Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oxford company has limited funds available for inv

Oxford Company has limited funds available for investment and must ration the funds among four...

60.1K

Verified Solution

Question

Accounting

Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:
Project Investment Required Present value of Cash Inflows Life of the Project (years) Internal Rate of Return
A $ 190,000 $ 284,323716%
B $ 152,000 $ 257,0001221%
C $ 103,000 $ 215,035720%
D $ 174,000 $ 293,136319%
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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Exodus Limousine Company has $1,000 par value bonds outstanding at 18 percent interest. The bonds will...

Finance
Q

NZ Boatbuilders, Ltd. has some outstanding projects to develop. During the next three years these projects...

Finance
Q

14. The placenta releases estrogen and progesterone. It also releases chorionic somatomammotropin hormone. What is its function? 15....

Medical Sciences
Q

Explain Demand Forecasting and Material Requirments planning and ERP  Based on Apple Inc operation # The answer should focus on...

General Management
Q

Maximum kinetic energy of emitted electron depends on frequency of incident photon when frequency of...

Physics
Q

Instead of using inequalities to describe domains and ranges we can use interval notation For...

Algebra
Q

Discuss how a contract between two entities should be treated in the annual financial statements...

Accounting
Q

Bianchi Company is considering a project that would have a ten-year life and would require...

Accounting
Q

Deoro produces two models of dishwashers with the following expected prime costs and activity demands:...

Accounting
Q

please help ! Muituale chatice 1. 931 ansin 1. WHe...

Accounting
Q

Explain how to derive European call option price under the one-step binomial tree model with...

Finance
Q

Calculate budgeted CM percomposite unlt 110 None of the ather alternative is correct 118 120...

Accounting