The data on investment and cash flows for each project is outlined below. Project Initial Investment Year One Year Two Year Three Year Four Project A $450,000 $200,000 $225,000 $275,000 $200,000 Project B $500,000 $150,000 $200,000 $300,000 $250,000 The appropriate discount rate for each project is 16%. With this information, determine the following information: NPV of cash flows for each project Profitability index for each project Based on your calculations, which project do you select and why?

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