Discuss the profitability index for project

Question

Question 1: Two investment projects which are mutually exclusive both require a $10,000,000 investment.

Question 2: If your discount rate is 12 percent, what is the net present value for Project A and Project B and profitability index for Project A and Project B?

Year              Project A            Project B
 1                 $3,500,000           $6,500,000
 2                 3,500,000             3,000,000
 3                 3,500,000             3,000,000
 4                 3,500,000             1,000,000