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 $ 345,000 $ 180,000 1 119,000 218,000 129,000 2 119,000 218,000 99,000

Suppose the relevant discount rate is 12 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.)

Profitability

index Project A Project B Project C

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.)

NPV Project A $ Project B $ Project C $