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 B C с D $ 130,000 $ 107,000 $ 100,000 $ 174,000 Present Value of Cash Inflows $ 219,323 $ 192,000 $ 150,035 $ 228,136 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 Required 2 Project 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. A B Life of the Project (years) 7 12 Complete this question by entering your answers in the tabs below. C D 7 3 Internal Rate of Return 218 17% 16% 22% Compute the profitability index for each project. (Round your answers to 2 decimal places.) Profitability Index

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 B C с D $ 130,000 $ 107,000 $ 100,000 $ 174,000 Present Value of Cash Inflows $ 219,323 $ 192,000 $ 150,035 $ 228,136 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 Required 2 Project 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. A B Life of the Project (years) 7 12 Complete this question by entering your answers in the tabs below. C D 7 3 Internal Rate of Return 218 17% 16% 22% Compute the profitability index for each project. (Round your answers to 2 decimal places.) Profitability Index

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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Subject: accounting
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