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Ok ces Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected Information on the four
Ok ces Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected Information on the four projects follows: Investment Present: Value of Life of the Project Project Required Cash Inflows (years) Internal Rate of Return A $ 180,000 $ 269,323 7 15 B $130,000 $ 242,000 12 201 C $ 100,000 $ 200,035 D $ 160,000 $ 278,136 7 3 19 18 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Net Present Profitability Internal Rate Value Index of Return First preference D C B Second preference C B C Third preference B D D Fourth preference A A A
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