BigBubble has projected the following cash flows of two mutually exclusive projects that have the same initial cost of 100,000. Both projects require an annual return of 12% due to the risks involved. Year Project A () Project B () 1 80,000 50,000 2 60,000 60,000 3 50,000 80,000 Required: a) Calculate the Net Present Value (NPV) for each project. Based on the NPV investment appraisal method which project should the company choose? (5 marks) b) Calculate the Profitability Index (PI). Based on the Pl investment appraisal method which project should the company choose? (5 marks) c) You are challenged by your colleagues about your above findings and recommendations. They argue that BigBubble should be indifferent as to which project to choose since both projects cost the same and bring the same money in, just at different times. Explain why they are wrong