Please explain the correct answers analytical!

XYZ s considering production line which will entail an immediate an investment in a new an increase in accounts receivables by 100,000 and a capital expenditure of 1,200,000, decrease in accounts payable by E100,000. The production line is going to be depreciated on a straight-line basis over 5 years with no expected salvage value. The sales and operating expenses of the company are expected to increase by 600,000 and 100,000 per year respectively, over the 5-year life of the project. The working capital is going to be recovered at the end of the useful life of the capital project in year 5. If Company XYZ is in the 20% tax bracket and the cost of capital is 10%, answer questions 1 to 5 below. 1.What is the investment cost? 1,000,000 a b. 1,100,000 c. 1,200,000 d. 1,300,000 e. 1,400,000 2. What are the net cash flows of the project on an annual basis for years 1 to 4? a. 448,000 b. 208,000 C. 260,000 d. 500,000 e. 740,000 3. What is the net cash flow of the project for year 5? a. 448,000 b. 180,000 c. 648,000 d. 540,000 e. 748,000 4. What is the present value of all future net cash flows of the project? a. 788,465.60 b. 1,698,233.60 c. 1,822,413.60 d. 1,061,661.60 e. None of the above 5. What is the profitability index? (Assume two decimal points and no rounding) a. 1.20 b. 1.10 c. 1.00 d. 1.30 e. None of the above