$3.$ Two investment projects which are mutually exclusive both require a $$10,000,000$ investment. Projected cash flows are:

Year Project A Project B

$1$ $$3,500,000$ $$6,500,000$

$23,500,0003,000,000$

$33,500,0003,000,000$

$43,500,0001,000,000$

If your discount rate is $12$ percent, net present value and profitability index for each project.

$3$a$.$ Net Present Value

Project A $(5$ Points$)$:

Project B $(5$ Points$)$:

$3$b$.$ Profitability Index

Project A $(5$ Points$)$:

Project B $(5$ Points$)$: