Question
he treasurer of Amaro Canned Fruits Inc. has projected the cash flows of projects A, B, and C as follows: Year Project A Project B
he treasurer of Amaro Canned Fruits Inc. has projected the cash flows of projects A, B, and C as follows:
| Year | Project A | Project B | Project C | |||
| 0 | $ | 215,000 | $ | 376,000 | $ | 215,000 |
| 1 | 138,000 | 230,000 | 152,000 | |||
| 2 | 138,000 | 230,000 | 118,000 | |||
Suppose the relevant discount rate is 9 percent a year.
a. Compute the PI for each of the three projects. (Do not round intermediate calculations. Round the answers to 2 decimal places.)
| Profitability Index | |
| Project A | |
| Project B | |
| Project C | |
b. Compute the NPV for each of the three projects. (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit $ sign in your response.)
| NPV | |
| Project A | $ |
| Project B | $ |
| Project C | $ |
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Tail Risk Hedging Creating Robust Portfolios For Volatile Markets
Authors: Vineer Bhansali
1st Edition
0071791752,0071791760
