Q1. The Vice President, Finance of the firm has estimated the following cash flows (in rupee) of Project A, B and C. Year 0 1 2 Project A -2,25,000 1,65,000 1,65,000 Project B -4,50,000 3,00,000 3,00,000 Project C -2,25,000 1,80,000 1,35,000 Assume the discount rate is 12%. 1. If these three projects are independent, which project/s should the firm accept based on profitability index? 2. If these three projects are mutually exclusive, which project/s should the firm accept based on profitability index? 3. If these three projects are independent, which project/s should the firm accept based on Net Present Value? 4. If these three projects are mutually exclusive, which project/s should the firm accept based on Net Present Value? 5. If the firm has the budget constraints of INR 450000 and project are not divisible, which project/s firm should accept? (15 Marks)