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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 C as follow.
Cashflow.
Yeare Project A. Project B. Project C..
0.-100,000,-200,000,-100,000dots
70,000=130,000,75,000..
70,000,130,000=60,000=.
Suppose the relevart discount rate is 12 percent a year.
a. Compute the profitability indices for each of the three projects? (1 Points)-
b. Compute the NPV for each of the three projects. (I Points).
c. Suppose these three projects are independent. Which project(s) should Amare accept
based on the profitability index rule? (1 Points).
d. Suppose these three projects are mutually exclusive. Which project(s) should Amaro
accept based on the profitability index rule? (1 Points).
e. Suppose Amaro's budget for these projects is $300,000. The projects are not divisible.
Which project(s) should Amare accept? (1 Points).
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