Exercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5] 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 Life of the Project Internal Rate Inflows ABL $ 160,000 $ 259,323 (years) 7 of Return 16% $ 135,000 $ 232,000 12 18% C $ 100,000 $ 190,035 7 22% D $ 164,000 $ 268,136 3 17% 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. 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 C D
Exercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5] 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 Life of the Project Internal Rate Inflows ABL $ 160,000 $ 259,323 (years) 7 of Return 16% $ 135,000 $ 232,000 12 18% C $ 100,000 $ 190,035 7 22% D $ 164,000 $ 268,136 3 17% 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. 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 C D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5]
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
Life of
the
Project
Internal
Rate
Inflows
ABL
$ 160,000
$ 259,323
(years)
7
of Return
16%
$ 135,000
$ 232,000
12
18%
C
$ 100,000
$ 190,035
7
22%
D
$ 164,000
$ 268,136
3
17%
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.
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
C
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb40ff837-d608-4690-b2ee-8bd57dc29dbc%2F0187e438-b52b-406e-a412-a0189a0c1cf3%2Fh6u6tsj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5]
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
Life of
the
Project
Internal
Rate
Inflows
ABL
$ 160,000
$ 259,323
(years)
7
of Return
16%
$ 135,000
$ 232,000
12
18%
C
$ 100,000
$ 190,035
7
22%
D
$ 164,000
$ 268,136
3
17%
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.
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
C
D
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