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	Required investment	Net present value	Life of the project (years)
A	$238,000	$35,400	7
B	344,000	130,400	12
C	333,000	109,700	7
D	573,000	76,400	3
E	501,000	(26,700)	6

The net present values above have been computed using a 10% discount rate. the company wants your assistance in determing which project to accept first, which to accept second and so on.

Required:

1. Compute the profitablity index for each project (Round your answer to 2 decimal places)

Project	Profitability index
A
B
C
D
E

2. In order of preerence rank the 5 projects in terms of (a) net present value (b) profitability index

238000	Net present value	Profitability index
First preference
Second preference
Third preference
Fourth preference
Fifth preference