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Exercise 12-11 Preference Ranking of Investment Projects [LO12-5] Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Net Life of the Project (years) of Return Internal Rate Project A Investment Present Required Value $890,000 $140,390 5 16% B $765,000 $356,199 20% C $740,000 $177,435 S 19% D $940,000 $135,137 3 10% 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 net present value, project profitability index and internal rate of return. Complete this question by entering your answers in the tabs below. 10 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the project profitability index for each project. (Round your answers to 2 decimal places.) Project Project Profitability Index A B Required 1 Required 2 > C D Complete this question by entering your answers in the tabs below. Required 1 Lequired 2 In order of preference, rank the four projects in terms of net present value, project profitability index and internal rate of return. Net Present Value Project Profitability Index Internal Rate of Return. First preference Second preference Third preference Fourth preference

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