2 (Chapter 5) The treasurer of Madera Sunnyside Fruit Co. has projected cash flows of projects A, B and C as follows (in $1000). Year A B 0 -220 -400 -205 1 140 260 150 2 140 260 115 Assume a discount rate of 12 percent. a. Compute the profitability index for each of the three projects. b. Compute the NPV for each of the three projects. c. Suppose the three projects are independent. Which project(s) should MSF accept based on the profitability index rule? d. Suppose the three projects are mutually exclusive. Which project should MSF choose based on the profitability index rule? Based on NPV? e. Suppose MSF has budget for these projects of $450,000. The projects are not divisible. Which project(s) should MSF accept