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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
| 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 | $ | 180,000 | $ | 330,000 | $ | 180,000 | |||
| 1 | 116,000 | 212,000 | 126,000 | ||||||
| 2 | 116,000 | 212,000 | 96,000 | ||||||
| Suppose the relevant discount rate is 9 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., 32.16.) |
| 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., 32.16.) |
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Green And Sustainable Finance
Authors: Simon Thompson
2nd Edition
1398609242, 978-1398609242
