The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 419 Weeks Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
|
The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows: |
| Year | Project A | Â | Project B | Â | Project C | Â | |||
| 0 | ?$ | 185,000 | Â | ?$ | 350,000 | Â | ?$ | 185,000 | Â |
| 1 | Â | 121,000 | Â | Â | 220,000 | Â | Â | 131,000 | Â |
| 2 | Â | 121,000 | Â | Â | 220,000 | Â | Â | 101,000 | Â |
| Suppose the relevant discount rate is 8 percent a year. |
| a. |
Compute the profitability index for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) |
| Â | Profitability index |
| Â Â Project A | Â Â |
| Â Â Project B | Â Â |
| Â Â Project C | Â Â |
| b. |
Compute the NPV for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) |
| Â | NPV |
| Â Â Project A | $Â Â Â |
| Â Â Project B | $Â Â Â |
| Â Â Project C | $Â Â Â |
| c. |
Suppose these three projects are independent. Which project(s) should Amaro accept based on the profitability index rule? |
||||||||||||||
| Â | Â | ||||||||||||||
| Â |
|
| d. |
Suppose these three projects are mutually exclusive. Which project(s) should Amaro accept based on the profitability index rule? |
||||||||||||||
| Â | Â | ||||||||||||||
| Â |
|
| e. |
Suppose AmaroAc€?cs budget for these projects is $535,000. The projects are not divisible. Which project(s) should Amaro accept? |
||||||||||||||
| Â | Â | ||||||||||||||
| Â |
|
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l