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ETP Co. has an investment opportunity costing $80,000 that is expected to yield the following cash flows over the next ten years: Year 1: $15,000

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ETP Co. has an investment opportunity costing $80,000 that is expected to yield the following cash flows over the next ten years: Year 1: $15,000 Year 2: $15,000 Year 3: $15,000 Year 4: $15,000 Year 5: $15,000 Year 6: $15,000 Year 7: $13,000 Year 8: $14,000 Year 9: $16,000 Year 10: $12,000 Part A. Find the Net Present Value (NPV) and Profitability Index (PI) of the investment at a discount rate of 10%. Part B: Does this capital project appear to be a favorable investment? Why or Why not? Part C: lf a second project (X) with a profitability index of 1.85 was also being considered, which project (ETP or X) would be best and WHY

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