Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows of the Rate Project of Return (years) (percent) ProjectRequired 5820,000 5655,000 5520,000 5720,000 Value 5389,390 $265,870 $234,4289 $151,930 21% 17% 20% 1896 14 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, second, and so forth. 1. Compute the project profitability index for each project. (Round your answers to 2 decimal places.) Index 2. In order of preference, rank the four projects in terms of net present value, project profitability index and internal rate of return. Net Present Profitability Internal Rate of Return Index First preference Second preference Third preference Fourth preference Derrick Iverson is a divisional manager for Holston Company. His annual pay raises are largely determined by his division's return on investment (ROI), which has been above 25% each of the last three years. Derrick is considering a capital budgeting project that would require a $4,700,000 investment in equipment with a useful life of five years and no salvage value. Holston Company's discount rate is 19%. The project would provide net operating income each year for five years as follows: Sales Variable expenses $4,100,000 1,800,000 Contribution margin Fixed expenses: 2.300,000 Advertising, salaries, and other fixed out-of-pocket costs 5735,000 735,000 Total fixed expenses 1.470,000 Net operating income S 830,000 Click here to view Exhibit 11B- tables. 1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using Required: 1. Compute the project's net present value. (Use the appropriate table to determine the discount factor(s), intermediate calculations and final answer to the nearest dollar amount.) 2. Compute the project's simple rate of return. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.) rate of return nformation on four investment proposals is given below: Investment Proposal Investment required S (280,000) (140,000) S(50,000) 780,000) 192,800 78,100 1,038,100 Present value of cash inflows Net present value Life of the project $ 113,900 S52,800 S 28,100 S 258,100 5 years 7 years 6 years 6 years Required: decimal places.) Project Investment Profitability Proposal Index