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The treasurer of Amaro Canned Fruits, Incorporated, has projected the cash flows of Projects A , B , and C as follows: Suppose the relevant

The treasurer of Amaro Canned Fruits, Incorporated, has projected the cash flows of
Projects A,B, and C as follows:
Suppose the relevant discount rate is 6 percent per year.
a. Compute the profitability index for each of the three projects. (Do not round
Intermedlate calculations and round your answers to 2 decimal places, e.g.,32.16.)
b. Compute the NPV for each of the three projects. (Do not round Intermedlate
calculations and round your answers to 2 declmal places, e.g.,32.16.)
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
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