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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 and as follows:
Suppose the relevant discount rate is percent per year.
a Compute the profitability index for each of the three projects. Do not round
Intermedlate calculations and round your answers to decimal places, eg
b Compute the NPV for each of the three projects. Do not round Intermedlate
calculations and round your answers to declmal places, eg
c Suppose these three projects are independent. Which projects should Amaro accept
based on the profitability index rule?
Project A
Project B
Project
Project A Project B Project
Project A Project B
Project A Project
Project B Project
d Suppose these three projects are mutually exclusive. Which projects 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 $ The projects are not divisible. Which projects 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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