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The treasurer of Tropical Fruits, Incorporated, has projected the cash flows of Projects A, B, and C as follows: Year Project A Project B
The treasurer of Tropical Fruits, Incorporated, has projected the cash flows of Projects A, B, and C as follows: Year Project A Project B 0 -$ 180,000 -$ 345,000 Project C -$ 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. Note: 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. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. Project A profitablity index Project B profitability index Project C profitability index b. Project A NPV Project B NPV Project C NPV
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