Tech Inc. has a $5 million capital budget and must make decisions regarding investment projects for the coming year. Projects 1, 2, and 3 are mutually exclusive, and Project 4 is independent of all three. Tech Inc.'s cost of capital is 12 %. Initial cash outflow Year 1 cash inflow Year 2 cash inflow Year 3 cash inflow Project 1 2,000,000 500,000 1,000,000 1,500,000 Project 2 2,500,000 1,000,000 1,500,000 1,500,000 Project 2 5,000,000 2,000,000 3,000,000 2,500,000 Project 4 2,500,000 1,350,000 1,350,000 1,350,000 Answer the following questions: a. Use the information on the three mutually exclusive projects to determine which of those three investments your firm should accept on the basis of Net Present Value (NPV). (Marks: 3) b. What is Profitability Index (PI)? Which of the three mutually exclusive projects should the firm accept (Marks: 3) based on PI? C. Suppose Project 4, the independent project also becomes available. Which of the mutually exclusive projects do you accept? (Note: Remember there is a $5 million budget constraint.) Is the better technique in this situation NPV or PI? Why? (Marks: 4) Please show your calculations clearly