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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

 
   

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    175,000     325,000     175,000 

1          115,000            210,000           125,000

2           115,000           210,000             95,000

Suppose the relevant discount rate is 8 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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