Answer second question

Assume there is a project where the firm will initially invest $60,000 to receive $14,000 at Year 1, $15.000 at Year 2. $16,000 at Year 3. $14.000 at Year 4. $15,500 at Year 5, and $16,500 at Year 6. If the interest/discount rate is 10.50%, what is the profitability index? 1.08 O 1.52 O 0.52 O 0.08 D Question 28 2.86 pts Same facts as above: How would your answer change if the cash inflows increase by 10% and the rate changes to 11.3%? HINT: Note that cash inflows increased by 10% (that is, outflow/initial expenditure remained the same). 1.31 1.08 O 116 O 1.21