Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show any work, thank you! Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected Information
please show any work, thank you!
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected Information on the four projects follows: Life of the Project A Present Investment Value of Cash Required Inflows $ 200,000 $ 309,323 $ 116,000 $ 282,000 $ 100,000 $ 240,035 $ 160,000 $ 318,136 Project (years) 7 12 2 3 Internal Rate of Return 15% 20% 19% 18% D The net present values should be 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 profitability Index for each project 2. In order of preference, rank the four projects in terms of net present value, profitability Index, and internal rate of return. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. (Round your answers to 2 decimal place.) Project Profitability Index B D Ren Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return . Net Present Profitability Internal Rate Value Index of Return First preference Second preference Third preference Fourth proference Required 1 Required2 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started