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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. Required: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Profitability Project Index A B с UD 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 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Internal Rate of Return Net Present Value Profitability Index First preference Second preference Third preference Fourth preference < Required 1 Required 2 >

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. Required: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Profitability Project Index A B с UD 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 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Internal Rate of Return Net Present Value Profitability Index First preference Second preference Third preference Fourth preference < Required 1 Required 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown below:

Project Investment
Required		 Present
Value of Cash Inflows		 Life of
the
Project
(years)		 Internal
Rate
of Return
A $ 170,000 $ 329,323 7 12%
B $ 118,000 $ 302,000 12 17%
C $ 105,000 $ 260,035 7 16%
D $ 165,000 $ 338,136 3 15%

The net present values above have been computed using a 10% discount rate.

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
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. Required: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Profitability Project Index A B с UD <Required 1 Required 2 >
Transcribed Image Text: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. Required: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Profitability Project Index A B с UD <Required 1 Required 2 >
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 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Internal Rate of Return Net Present Value Profitability Index First preference Second preference Third preference Fourth preference < Required 1 Required 2 >
Transcribed Image Text: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 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Internal Rate of Return Net Present Value Profitability Index First preference Second preference Third preference Fourth preference < Required 1 Required 2 >
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