NEED ANS ASAP

Oxford Company has limited funds available for investment and must ration the funds among five competing projects. Selected information on the five projects follows:

Project Investment Required Net Present Value Life of the Project (years) A $ 553,000 $ 38,700 7 B 630,000 133,300 12 C 507,000 108,000 7 D 466,000 107,500 3 E 198,000 (36,400 ) 6

The net present values above have been computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, which to accept second, and so on.

Required:

1. Compute the profitability index for each project. (Round your answers to 2 decimal places.)

2. In order of preference, rank the five projects in terms of (a) net present value, (b) profitability index.