iThemba Ltd is considering undertaking a five years project, which will involve an initial outlay of R500,000. The project has the following cash flows associated with it: End year 1 2 3 4 5 cash inflow 300,000 400,000 100,000 50,000 45,000 cash outflow 90,000 100,000 175,000 35,000 20,000 a) What is the payback period for this project? b) If a rate of 20% is considered; what is the net present value (NPV) & the profitability index PI of the project? b) Is the project worthwhile for selection? Explain.