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The treasurer of Amaro. Canned Fruits, Inc., has projected the cash flows of projects A , B , and C as follow. Cashflow. Yeare Project
The treasurer of Amaro. Canned Fruits, Inc., has projected the cash flows of projects A B
and as follow.
Cashflow.
Yeare Project A Project B Project C
dots
Suppose the relevart discount rate is percent a year.
a Compute the profitability indices for each of the three projects? Points
b Compute the NPV for each of the three projects. I Points
c Suppose these three projects are independent. Which projects should Amare accept
based on the profitability index rule? Points
d Suppose these three projects are mutually exclusive. Which projects should Amaro
accept based on the profitability index rule? Points
e Suppose Amaro's budget for these projects is $ The projects are not divisible.
Which projects should Amare accept? Points
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