Question 1. (15 pts) A project manager is working on justification of a project. Since very little information is known about the project, some rough estimates have been gathered. Following table is prepared to show the cash inflow and outflow for the following years: Year Cash In Flow Cash Out Flow 0 0 1 700 190 500 700 2 200 3 4 300 400 150 100 What is the payback period for this project? Question 2. (25 pts) If the required rate of return is 10%, is the project mentioned above acceptable? Use NPV. Question 3. (10 pts) Calculate profitability index to determine if the project acceptable. Use 10% interest rate. NOTE: Show the calculations for the question 1,2,and 3 and fill in the table below. Year Net cash flow Cum Cash Flow Discounted Cash Flow 0 1 Cash In Flow 0 500 700 300 400 Cash Out Flow 700 190 200 150 100 2 3 4 Discounted Cash Flow (NPV) Net Cash In Flow Net Cash Out Flow Profitability Index Payback Period