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2 Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:
2 Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: s Project A B C D Present value of Cash Inflows $ 289,323 $ 262,000 $ 220,035 $ 298,136 Investment Required $ 170,000 $ 122,000 $ 102,000 $ 164,000 Book Life of the Internal Project Rate of (years) Return 7 17% 12 22% 7 21% 3 20% Print erences The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. Required: 1. Compute the profitability index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return
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