Alliance corporation is considering investing inna project that will incur an initial investment of $$500000.$ The project has a usefull life of $5$ years. The projects projected free after tax cash flow is $150000$ per year throughout the life of the project. The firm requires a rate of return for similar risk project of $16\%.$ Based on the above information compute the following and derermine under each criteria if the firm should accept the project. A$)$ rhe NPV B$)$ the irr C$)$ payback period, the firms minimum acceptable payback period is $3\mathrm{.}5$ years d$)$ discounted payback period. Minimum accpatable discounred period is $4$ years. E$)$ compute the profitability index for this investment. What purpose does profitability index serve in capital budgetting process