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

Project	Investment Required	Net Present Value	Life of the PRoject (years)	Internal Rate of Return
A	$160,000	$44,323	7	18%
B	$135,000	$42,000	12	16%
C	$100,000	$35,035	7	20%
D	$175,000	$38,136	3	22%

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.

Questions:

1.) Project profitability index, project A

2.) Project profitability index, project B

3.) Project profitability index, project C

4.) Profitability index, project D

5.) In order of preference, rank the four projects in terms of net present value.

( A,B,C,D )

Second

First

Third

Fourth

6.) In order of preference, rank the four projects in terms of project profitability index.

( A,B,C,D )

Second

First

Fourth

Third

7.) In order of preference, rank the four projects in terms of internal rate of return.

( A,B,C,D )

Second

third

Fourth

First