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.

3. This part of the question is not part of your Connect assignment.