Compute the NPV and profitability index for a project that requires an initial investment of $400,000 and provides the following annual cash inflows. Use a discount rate of 6%.

Cash Flows:

• Year 1: $90,000
• Year 2: $100,000
• Year 3: $110,000
• Year 4: $120,000
• Year 5: $130,000

Requirements:

1. Calculate the present value of each cash inflow.
2. Sum the present values to determine the total present value of inflows.
3. Subtract the initial investment from the total present value to get the NPV.
4. Calculate the profitability index.