Project A requires $10 million initial cost, and Project B requires $8 million initial cost. Project A would generate cash inflow for 6 years, and Project B would generate cash inflow for 8 years. The corresponding cash inflows are given in the following table. The discount rate for each project is at 10% Year 6 Project A B Year 1 1.8 3 Year 2 2.4 3 Year 3 3.6 3 Year 4 4.8 Year 5 6.0 3 7.2 Year 7 0 3 Year 8 0 3 3 a) Calculate the profitability index for each Project. If the project are independents, discuss which project(s) you would choose. (10 marks) b) Calculate the payback period for each project (assume cash inflow is evenly distributed within a year). If the cutoff-payback period is 4 years, and the projects are mutually exclusive, discuss which project(s) you would choose. (10 marks)