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The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows: Suppose the relevant discount rate
The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows: Suppose the relevant discount rate is 11 percent per year. a. Compute the profitability index for each of the three projects. (Do not round intermediate calculations. Round your answers b. Compute the NPV for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decim 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
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