: Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash flows:

Year	Project A	Project B
1	5,000,000	20,000,000
2	10,000,000	10,000,000
3	20,000,000	6,000,000

1. What are the two projects Net Present Values, assuming the cost of capital is 5%?
2. What are the two projects Profitability Index, assuming the cost of capital is 5%?
3. Which project or projects should be accepted if they are independent?
4. Which project should be accepted if they are mutually exclusive?