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Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Project
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:
Project Investment
Required Present
Value of Cash Inflows Life of
the
Project
years Internal
Rate
of Return
A $ $
B $ $
C $ $
D $ $
The net present values should be computed using a discount rate. The company wants your assistance in determining which project to accept first, second, and so forth.
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected
information on the four projects follows:
The net present values should be computed using a discount rate. The company wants your assistance in determining which
project to accept first, second, and so forth.
Required:
Compute the profitability index for each project.
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
Compute the profitability index for each project.
Note: Round your answers to decimal places.Compute the profitability index for each project.
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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