1. The treasurer of Amaro Canned Fruits, Incorporated, has projected the cash flows of Projects A ,
B , and C as follows: 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.) 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 Amaro
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 Amaro 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 Amaro's budget for these projects is $810 ,
000 . The projects are not divisible. Which project(s) should Amaro accept? Project A Project B
Project C 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 Amaro 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 Amaro's budget for these projects is $810 , 000 . The projects are not
divisible. Which project(s) should Amaro accept? Project A Project B Project C Project A,
Project B, Project C Project B, Project C Project B, Project A Project A, Project C