Evaluate the following projects, using the profitability Index. Assume a cost of capital of 12% [SK1: 7 marks] Year Cash Flow Year o Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Project M $125,000 11,500 63,500 95,000 Project N $140,000 80,000 47,500 37.500 Required: a. What is the profitability Index for each project? (5 marks) b. If these projects are mutually exclusive, which would you accept according to the Pi criterion? Justify your answer (2 marks)