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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: Present
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected Information on the four projects follows: Present value Life of the Internal Project A Investment Required of Cash Project Rate of Inflows (years) Return $160,000 $ 259,323 7 16% B $ 135,000) $ 232,000 12 18% C $ 100,000 D $164,000 $ 190,035 $268,136 7 22% 3 17% 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. 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 valu Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. (Round your answers to 2 de Project Profitability A B C D Index 13 1. Compute the profitability index for each project. 2. In order of preference, rank the four projects in terms of net present value, p 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, profit First preference Second preference Third preference Fourth preference Net Present Value Profitability Index Internal Rate of Return < Required 1 Required 2
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