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Use the information provided below for questions (18) to (20) The treasurer of Amaro Canned Fruits, Inc, has projected the cash flows of projects A,
Use the information provided below for questions (18) to (20) The treasurer of Amaro Canned Fruits, Inc, has projected the cash flows of projects A, B, and C as follows: Suppose the relevant discount rate is 12 percent per year. Compute the profitability index for each of the three projects. Suppose these three projects are mutually exclusive. Which project(s) should Amaro accept based on the profitability index rule? To answer this question, calculate the incremental cash flows and show your work. Suppose these three projects are independent. Which project(s) should Amaro accept based on the profitability index rule
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