Question 1. (20 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 0 1 Cash In Flow ($) 0 300 400 500 500 900 Cash Out Flow ($) 900 200 200 300 200 2 3 4 5 300 a) (6 pts) What is the payback period for this project? b) (8 pts) If the required rate of return is 20%, is the project mentioned above acceptable? Use NPV. c) (4 pts) Calculate profitability index to determine if the project acceptable. Use 20% interest rate. d) (2 pts) If the required rate of return is accepted as 15%, how this affects the NPV of the project. There is no need for calculation, only make comment. NOTE: Show the calculations for the question a, b, and c and fill in the table below. Year Cash In Flow ($) Cum Cash Flow Discounted Cash Flow 0 1 2 3 Cash Net Out cash Flow ($) flow 900 200 200 300 200 300 0 300 400 500 500 900 | Discounted Cash Flow (NPV) Net Cash In Flow Net Cash Out Flow Profitability Index Payback Period