An investor has a budget of $12 million. He is presented with the following three projects to invest in. His cost of capital is 6%:

	Initial Investment	Cash flow
Project A	$6 million	$3 million per year for three years
Project B	$5 million	$2 million per year for six years
Project C	$4 million	$1.5 million per year for eight years

a) Calculate the NPV and profitability index for each of the three projects.

b) Which project(s) should he invest in?