Profitability Index P8-15. Evaluate the following three projects using the profitability index. Assume a cost of capital of 15%. Project Cash Flows Recondition Replace Liquidate $100,000 50,000 60,000 75,000 $500,000 100,000 200,000 250,000 -$1,000,000 500,000 500,000 500,000 Initial Cash Outflow Year I cash inflow Year 2 cash inflow Year 3 cash inflow a. Rank these projects by their Pls b. If the projects are independent, which would you accept according to the Pl criterion? c. If these projects are mutually exclusive, which would you accept according to the PI criterion? d. Apply the NPV criterion to the projects, rank them according to their NPVs, and indicate which you would accept if they are independent and mutually exclusive. Compare and contrast your answer from part (c) with your answer to part (d) for the mutually exclusive case. Explain this result. e