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.Calculate the Net Present Value (NV), 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.

b. What are the advantages and disadvantages of using the Profitability Index as an evaluation criteria?