TCM is considering two mutually exclusive projects. TCM has a 7% cost of capital and follows the straight-line method of depreciation. TCM average rate of tax is 25%. The following is the estimated earnings after tax shown below: Project A Project B Initial investment ($) 650,000 440,000 Year Earnings after tax ($ 120,000 200,000 170,000 170,000 3 220,000 150,000 4 250,000 50,000 5 270,000 30,000 6 90,000 30,000 a. Calculate the Net Present Value, Payback period and Profitability Index of each project. b. Rank and assess acceptance of each project based on your findings in a. Note: Present value interest factor of $1 per period at 7% for 6 years is given below: Year 7% 1 0.935 2 0.873 3 0.816 A 0.763 5 0.713 6 0.666