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
0	$	210,000		$	375,000		$	210,000
1		135,000			230,000			145,000
2		135,000			230,000			115,000

Suppose the relevant discount rate is 6 percent per year.

a.	Compute the profitability index for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Profitability index
Project A
Project B
Project C

b.	Compute the NPV for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	NPV
Project A	$
Project B	$
Project C	$

c.

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

	Project A
	Project B
	Project C
	Project A, Project B, Project C
	Project A, Project B
	Project A, Project C
	Project B, Project C

d.

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

	Project A
	Project B
	Project C
	Project A, Project B, Project C
	Project A, Project B
	Project A, Project C
	Project B, Project C

e.

Suppose Amaros budget for these projects is $585,000. The projects are not divisible. Which project(s) should Amaro accept?

	Project A
	Project B
	Project C
	Project A, Project B, Project C
	Project B, Project C
	Project B, Project A
	Project A, Project C