The treasurer of Tropical Fruits, Inc., has projected the cash flows of Projects A$,$ B$,$ and C as follows:

Year Project A Project B Project C

$0$$ $210,000$$ $375,000$$ $210,000$

$1135,000230,000145,000$

$2135,000230,000115,000$

Suppose the relevant discount rate is $6$ percent per year.

a$.$ Compute the profitability index for each of the three projects. $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Compute the NPV for each of the three projects. $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ Suppose these three projects are independent. Which project$($s$)$ should the company accept based on the profitability index rule?

multiple choice $1$

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 the company accept based on the profitability index rule?

multiple choice $2$

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 the budget for these projects is $$585,000.$ The projects are not divisible. Which project$($s$)$ should be accepted?

multiple choice $3$

Project A

Project B

Project C

Project A$,$ Project B$,$ Project C

Project B$,$ Project C

Project B$,$ Project A

Project A$,$ Project C