Following are the capital projects being considered by the management of UpTown Productions:
$$
\begin{array}{lccc}
\text { Project } & \text { Cost } & \begin{array}{c}
\text { Annual After-Tax } \\
\text { Cash Flows }
\end{array} & \begin{array}{c}
\text { Number of } \\
\text { Years }
\end{array} \\
\hline
\end{array}
$$
$$
\begin{array}{lrrr}
\text { Film studios } & \$ 18,000,000 & \$ 2,800,000 & 15 \\
\text { Cameras and equipment } & 3,200,000 & 800,000 & 8 \\
\text { Land improvement } & 5,000,000 & 1,180,000 & 10 \\
\text { Motion picture \#1 } & 17,800,000 & 4,970,000 & 5 \\
\text { Motion picture \#2 } & 11,400,000 & 3,920,000 & 4 \\
\text { Motion picture \#3 } & 7,800,000 & 2,100,000 & 7 \\
\text { Corporate aircraft } & 2,400,000 & 770,000 & 5
\end{array}
$$
Assume that all projects have no salvage value and that the firm uses a discount rate of 10 percent. Company management has decided that only $$\$ 25,000,000$$ can be spent in the current year for capital projects.
a. Determine the net present value, profitability index, and internal rate of return for each of the seven projects.
b. Rank the seven projects according to each method used in part (a).
c. Indicate how you would suggest to the management of Uptown Production that the money be spent. What would be the total net present value of your selected investments?