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: If 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?