Comparing Investment Criteria The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of Projects A$,$ B$,$

and $C$ as follows:

Suppose the relevant discount rate is $12$ percent per year.

a$.$ Compute the profitability index for each of the three projects.

b$.$ Compute the NPV for each of the three projects.

c$.$ Suppose these three projects are independent. Which project$($s$)$ should Amaro accept based on the profitability index rule?

d$.$ Suppose these three projects are mutually exclusive. Which project$($s$)$ should Amaro accept based on the profitability index rule?

e$.$ Suppose Amaro's budget for these projects is $$810,000.$ The projects are not divisible. Which project$($s$)$ should Amaro accept?

$.$ Comparing Investment Criteria Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company.

Assume the discount rate for both projects is $8$ percent.