JKL Inc. is evaluating three investment proposals:

• Project A:

• Initial Investment: $(240,000)
• Cash Inflows: $60,000, $80,000, $70,000, $65,000 over four years

• Project B:

• Initial Investment: $(260,000)
• Cash Inflows: $70,000, $90,000, $75,000, $70,000 over four years

• Project C:

• Initial Investment: $(280,000)
• Cash Inflows: $80,000, $100,000, $85,000, $80,000 over four years

Requirements:

1. Calculate the NPV for each project using a 7% discount rate.
2. Determine the PI for each project.
3. Prepare a pro forma income statement for the selected project for the next four years.