Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $136,000 and have an estimated useful life of 5 years.

It will be sold for $70,000 at that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $25,000. The company's borrowing rate is 8%. Its cost of capital is 10%

calculate:

1- cash payback

2- net annual cash flow

3- Present value

4- Net present value

5- Profitability index