information on the four projects follows:
- Oxford Company Has Limited Funds Available For Investment And Must Ration The Funds Among Four Competing Projects Selec 1 (35.68 KiB) Viewed 9 times
- Oxford Company Has Limited Funds Available For Investment And Must Ration The Funds Among Four Competing Projects Selec 2 (40.15 KiB) Viewed 9 times
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Investment Project Required A $ 200,000 B $152,000 C $ 100,000 $ 210,035 D $ 170,000 $ 288,136 Present Value of Cash Inflows $ 279,323 $252,000 Life of the Project (years) 7 12 7 Required 1 3 First preference Second preference Third preference Fourth preference Internal Rate of Return. 16% 21% 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. 20% 19% Complete this question by entering your answers in the tabs below. 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 Value Index Internal Rate of Return < Required 1