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The treasurer of Tropical Fruits, Inc., has projected the cash flows of Projects A, B, and C as follows: Suppose the relevant discount rate is
The treasurer of Tropical 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 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.) c. Suppose these three projects are independent. Which project(s) should the company 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 the company 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 the budget for these projects is $480,000. The projects are not divisible. Which project(s) should be accepted? 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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