Techinnovate Corp is considering investing in a groundbreaking project called Project Quantum Leap. The project involves developing cutting-edge quantum computing technology. The initial investment is $5 million,

and it is expected to generate cash flows of $2 million per year for the next five years. The company's cost of capital

is 10%.

a. (6 marks) Calculate the Net Present Value (NPV), Internal Rate of

Return (IRR), and Profitability Index (PI) for Project Quantum Leap and conclude on whether this is a good project for the company.

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b.

(4 marks) What are the advantages and disadvantages of using

the Profitability Index as an evaluation criteria?