Floyd is considering the purchase of equipment that costs $250,001. The project is expected to produce after-tax cash flows of $60,000 the first year, and increase by $10,000 annually; the after-tax cash flow in year 5 will reach $100,001. Liquidation of the equipment will net the firm $10,000 in cash at the end of five years, making the total cash flow in year five $110,000.

What is the payback period?

Assume the required return is 15%. What is the project's discounted payback period?

Assuming a required return is 15%, what is the project's profitability index?