Zeta Pharmaceuticals is considering an investment in a new drug development project with the following forecasted details: Initial amount invested is R900,000 and expected residual value is R70,000.

Year	Cashflows	Discount factor
Year 1	R180,000	0.909
Year 2	R250,000	0.826
Year 3	R240,000	0.751
Year 4	R180,000	0.683
Year 5	R170,000	0.621

Assuming that the cost of capital for the company is 16%. The cash flows are after tax and depreciation is charged at R80,000 per year. Tax rate is 28%.

Required: 1.1 Calculate each of the following: 1.1.1 Net Present Value (NPV) 1.1.2 Profitability Index (PI)