A project has the following expected cash flows. Compute the project's Profitability Index (PI) if the discount rate is 8%.

Expected Cash Flows:

• Year 0: -$60,000
• Year 1: $15,000
• Year 2: $20,000
• Year 3: $25,000
• Year 4: $30,000

Requirements:

1. Calculate the Profitability Index (PI).
2. Explain if the project should be accepted based on the PI rule.
3. Calculate the project's NPV.
4. Determine the project’s Payback Period.