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10 1. Group Indonesia has projected the cash flows of project A B and C as follows: Year Project A Project B Project C 0

10 1. Group Indonesia has projected the cash flows of project A B and C as follows: Year Project A Project B Project C 0 $1,00,000 -$200,000 -$1,00,000 1 70 1,30,000 75,000 2 70,000 1,30,000 60,000 Assume that the discount rate is 12% a year. a. Compute the Profitability Indices (PI) for each of the 3 projects. b. Compute the NPV for each of the 3 projects. c. Assume that the 3 projects are independent. Which project(s) should Group Indonesia accept based on the PI rule? d. Assume that the 3 projects are mutually exclusive. Which project(s) should Group Indonesia accept based on the PI rule? e. Assume that the Group's budget for these projects is $300,000. The projects are not divisible. Which project(s) should Group Indonesia accept? solve in excel

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