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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
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 A B C D E Investment Required $ 572,000 402,000 416,000 608,000 459,000 Project A B C D E Net Present Value $ 133,900 127,100 Profitability Index 108,900 218,900 (68,600) Life of the Project (years) 7 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 First preference Second preference Third preference Fourth preference Fifth preference 12 7 Required: 1. Compute the profitability Index for each project. (Round your answers to 2 decimal places.) 3 6 2. In order of preference, rank the five projects in terms of (a) net present value, (b) profitability Index Net Present Value Profitability Index
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