7) Music Company is considering investing in a new project, project A, in City A. The project will need an initial investment of $2,000,000 and will generate $1,000,000 (after-tax) cash flows for three years a. Calculate the NPV for the project if the cost of capital is 13%. b. Calculate the IRR for project A c. Now Music Company find that they can invest in a very similar project, project B, in another city, City B. The project B has the same projected cash flows and cost of capital Therefore the manager want to combine these two projects. What is the NPV of the combined project? d. Calculate project A's profitability index