Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown below:

Project Investment

Required Present

Value of Cash Inflows Life of

the

Project

$($years$)$ Internal

Rate

of Return

A $ $200,000$ $ $309,323715\%$

B $ $116,000$ $ $282,0001220\%$

C $ $100,000$ $ $240,035719\%$

D $ $160,000$ $ $318,136318\%$

The net present values above have been computed using a $10\%$ discount rate.

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.