IBM is planning to produce an expert system based on artificial intelligence and expects the following cash flows (in $ million) at the end of each year:

Year	Cash flow
0	-52
1	10
2	15
3	20
4	30

The company requires a return of 8% from this project.

Part 1

What is the project's profitability index?

Question 2

A project requires an initial investment of $50.52 million to buy new equipment, and will provide after-tax cash flows of $19 million per year for 4 years.

Part 1

What is the project's internal rate of return?