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the analysis. 17. Comparing Investment Criteria The treasurer of Amaro Canned Fruits, Inc, has projected the cash flows of Projects A, B, and C as
the analysis. 17. Comparing Investment Criteria The 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 -$225,000 $450,000 300,000 300,000 165,000 165,000 $225,000 80,000 135,000 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 acept should Amaro d. Suppose these three projects are mutually exclusive. Which project(s) shoul e. Suppose Amaro's budget for these projects is $450,000. The projects are not based on the profitability index rule? accept based on the profitability index rule? Which project(s) should Amaro accept
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