Facebook, Inc. is considering a project with an initial cash outlay of $350,000. The asset is depreciated over five years at 20% per year. The projected cash flows are as follows:

Year	Inflow ($)	Outflow ($)
Year 1	100,000	40,000
Year 2	110,000	45,000
Year 3	120,000	50,000
Year 4	130,000	55,000
Year 5	140,000	60,000

a. What is the payback period?
 b. Calculate the profitability index (PI).
 c. Assuming a cost of capital of 10%, what is the net present value (NPV) of the cash flows?
 d. Should Facebook undertake the project?