Two projects are under consideration:

• Project O:
  • Initial Investment: -$6,000,000
  • Year 1: $1,500,000
  • Year 2: $2,000,000
  • Year 3: $2,500,000
  • Year 4: $3,000,000
• Project P:
  • Initial Investment: -$7,000,000
  • Year 1: $1,700,000
  • Year 2: $2,200,000
  • Year 3: $2,700,000
  • Year 4: $3,500,000

Requirements:

a. Calculate the NPV of each project at a discount rate of 9%. b. Determine the IRR for each project. c. Assess the profitability index for both projects. d. Analyze which project should be preferred based on NPV and IRR.