Question: Two investment projects which are mutually exclusive both require a $10,000,000 investment. Projected cash flows are provided in a table below. Given discount rate of

Two investment projects which are mutually exclusive both require a $10,000,000 investment. Projected cash flows are provided in a table below. Given discount rate of 12 percent, calculate the net present value and profitability index for each project.

Projected Cash Flows for Project A and Project B
Year	Project A	Project B
1	$3,500,000	$6,500,000
2	3,500,000	3,000,000
3	3,500,000	3,000,000
4	3,500,000	1,000,000

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