A construction company is considering two projects, A and B, each of which requires an initial investment of $1 million. The company estimates that the net cash flows for project A will be $200,000 in the first year, $300,000 in the second year, and $400,000 in the third year. For project B, the company estimates that the net cash flows will be $500,000 in the first year, $200,000 in the second year, and $100,000 in the third year. The company has a cost of capital of 8%.

a) Calculate the net present value (NPV) and profitability index (PI) for each project.
b) Determine which project should be selected based on the NPV and PI.