The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of Projects A. B....

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The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of Projects A. B. and C as follows: Year Project A P

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Answer 1

Answer #1

(a) Profitability Index = PV of Cash in Hows Initial Investment 22,077.75 PI = 118,000 t 118.000 1112 190, ooo 190,000 1.06 P

(c)When projects are independent then all the projects having PI greater than 1 should be accepted

Hence ,projects A,B and C should be accepted

Correct option is - Project A, project B ,Project C

(d)When projects are Mutually exclusive then the project having highest PI should be accepted .

Hence ,Project B should be accepted .

Correct option is - Project B

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Answer 2

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The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of Projects A. B....

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