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

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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.

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