1. A project has an investment cost of $800,000 and a profitability index of1.3.What is the net present value of the project?
2. A currently used machine costs $6,500 annually to run.What is the maximum that should be paid to replace the machine with one that will last3years and will cost only $1,000annually to run?The opportunity cost of capital is 9 %.

The maximum amount that should be paid is: (please round your final result to 2 decimals, but keep as manydecimals as possible during calculation)