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		$	205,000		$	370,000		$	205,000
1			132,000			228,000			142,000
2			132,000			228,000			112,000

Suppose the relevant discount rate is 7 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 B
	Project A
	Project C
	Project A, Project B
	Project A, Project B, Project C
	Project A, Project C
	Project B, Project C

e. Suppose Amaros budget for these projects is $575,000. 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