correct answers are as follow:

a) PI_A1=1.49% and PI_A2=1.46%

b) PI_A2-A1 = 1.37, select A2

please help me with working the problem out, thanks

8.12 Consider the following two mutually exclusive projects: Project A1 Project A2 Investment Required at n = = 0 $750,000 $1,000,000 1 2 $100,000 $100,000 $100,000 3 4 $240.000 5 $200,000 $200,000 $200,000 $300,000 $300,000 $250,000 $250,000 $150,000 $100,000 $50,000 $200,000 $180,000 $180,000 6 7 8 $180,000 9 $180,000 $180,000 10 (a) Which project has the higher profitability index at i = 7%? (b) Which project would you choose if you can raise an unlimited amount of funds in financing either project at 7%? Use the profitability index rule