1. A project is expected to last for 4 years and has annual net cash inflows of $15230 per annum. The project's initial investment is $43974 and the firm's weighted average cost of capital 10.7 per cent. What is the project's profitability index
2. A firm is looking at replacing a machine. The new machine will cost $445477 and in 5 years time the machine could be sold for $159524. The allowable depreciation rate is 14.6% on a straight line basis. The company tax rate is 30%. What is the terminal cash flow assuming the project is evaluated over a 5 year investment horizon?