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	$	500,000		$	155,000			7
B		603,000			132,000			12
C		346,000			111,300			7
D		653,000			103,100			3
E		644,000			(28,500	)		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.