Question: EXERCISE 8-11 Preference Ranking of Investment Projects. Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:

The net present values above have been 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 project profitability index for each project.
2. In order of preference, rank the four projects in terms of:
   1. Net present value.
   2. Project profitability index.
   3. Internal rate of return.
3. Which ranking do you prefer? Why?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document