Question: You can use calculators or Excel to do the calculations. Be sure to write clear steps for your derivations. 3. (20 points) The treasurer of

You can use calculators or Excel to do the calculations. Be sure to write clear steps for your derivations.

3. (20 points) The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows: Year Project A Project B Project C 0 $225,000 $450,000 $225,000 165,000 300,000 183,000 165,000 300,000 132,000 1 2 Suppose the relevant discount rate is 12 percent a year. a. Compute the profitability index for each of the three projects. b. Compute the NPV for each of the three projects. c. Suppose these three projects are independent. Which project(s) should Amaro accept based on the profitability index rule? d. Suppose these three projects are mutually exclusive. Which project(s) should Amaro accept based on the profitability index rule? e. Suppose Amaro's budget for these projects is $450,000. The projects are not divisible. Which project(s) should Amaro accept

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