Rainy Day, Inc. is considering four possible development projects, each requiring an initial investment of $8,000,000. The cash inflows from each of the projects follow:

(a) Compute the net present value of each of the projects. Rainy Day's cost of capital is 12 percent. Please show work.
(b) Rainy Day can take on only one project; which should it choose? Be certain to explain your reasoning for the project selected.

year project sun project cloudy project stormy project gloomy sun 3,000,000 8,500,000 1 4,000,000 2,500,000 3,000,000 2 4,000,000 3 4,000,000 2,000,000 2,000,000 2,5000,000 16,000,000 4 4,000,000 8,500,000