Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:

ProjectInvestment

RequiredNet

Present

ValueLife of

the

Project

(years)Internal

Rate

of Return

(percent)A$880,000$434,360724%B$685,000$371,1701220%C$580,000$223,220721%D$780,000$165,060322%

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.

Required:1.Compute the project profitability index for each project.(Round your answers to 2 decimal places.)

2.In order of preference, rank the four projects in terms of net present value, project profitability index and internal rate of return.