Oxford Company has limited funds available for investment and must ration the funds among the four...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown below: Present Life of the Investment Value of Cash Project Internal Rate Project Required Inflows (years) of Return A $ 130,000 $319,323 7 15% B $115,000 $292,000 12 20% C $101,000 $250,035 D $166,000 $ 328,136 7 3 19% 18% The net present values above have been computed using a 10% discount rate 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Profitability Project Index A B C .D Required 1 Required 2 > Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown 1 below Present Investment Value of Cach Life of the Project Internal Rate Project Bequired Inflows (years) of Return A $130,000 5319,523 7 15% $110,000 $292,000 12 20% ebook c $101,000 $166,000 $ 250,035 $320,136 7 198 3 10% The net present values above have been computed using a 10% discount rate. 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. First preference Second preference Third preference Fourth preference Net Present Value Internal Rate Profitability Index of Return Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown below: Present Life of the Investment Value of Cash Project Internal Rate Project Required Inflows (years) of Return A $ 130,000 $319,323 7 15% B $115,000 $292,000 12 20% C $101,000 $250,035 D $166,000 $ 328,136 7 3 19% 18% The net present values above have been computed using a 10% discount rate 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each project. Note: Round your answers to 2 decimal places. Profitability Project Index A B C .D Required 1 Required 2 > Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown 1 below Present Investment Value of Cach Life of the Project Internal Rate Project Bequired Inflows (years) of Return A $130,000 5319,523 7 15% $110,000 $292,000 12 20% ebook c $101,000 $166,000 $ 250,035 $320,136 7 198 3 10% The net present values above have been computed using a 10% discount rate. 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. First preference Second preference Third preference Fourth preference Net Present Value Internal Rate Profitability Index of Return
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
The Sky Train from the terminal to the rental car and long-term parking center is supposed to arrive every 6 minutes. The waiting times for the train are known to follow a uniform distribution. Find...
-
From the values of the ratios given, calculate the missing balance sheet and income statement items of National Sponge Company.Round to nearest 0 0 0 s . Average Collection Period 4 3 . 2 2 days...
-
Hello This week we learning working capital management (cash conversion cycle, the cash budget, inventory management, and credit policies.) I understand the terminology, however, part of the...
-
What is the result of the following? A. 3.011459 B. 3.1401MM C. 59.011459 D. 59.1401MM E. The code does not compile. F. The code compiles but throws an exception at runtime. import java.time. *;...
-
What are the most common myths about data mining?
-
For Formulas 7-2 and 7-3 we assume that the population is infinite or very large and that we are sampling with replacement. When we sample without replacement from a relatively small population with...
-
From the following information you are required to prepare a statement apportioning the ~ unappropriated profit between the pre-incorporation and post-incorporation periods, showing the basis of...
-
Dollar-Value LIFO Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for...
-
Lighthouse Firms must decide between two mutually exclusive investment projects. Each project costs $17 395 and has an expected life of 3 years . Annual cash flows begin 1 year after the initi...
-
Refer to the condensed income statement for CarMax, Inc., in Exercise 21 and to the companys balance sheet shown as follows. TO DO: Compute the following profitability ratios for 2011, and provide a...
-
a function that receives a one-dimensional array of integers and returns a Python tuple with two values - the minimum and maximum values of the input array. The content of the input array must not be...
-
Advik and James share an apartment. Both have separate cell phone plans. The costs are $70 and $90, respectively. They would like to save money and combine it into one plan that costs $123. Using the...
-
Record the following merchandising transactions in proper journal entry format using the General Journal form provided. The company uses the perpetual inventory system and accounts for discounts...
-
Consider the parametric curve given by x = t + ln ( t ) , y = 1 0 t 1 0 ln ( t ) ( a ) Find dy / dx and d 2 y / dx 2 in terms of t
-
Convert the equation from polar to rectangular or rectangular to polar, depending on what is given in the problem: r = 1 6 4 c o s 0 + 4 s i n 0
-
A vertical column of liquid of density 9 8 0 . 5 9 8 0 . 5 kg m has a vertical height of 8 . 6 1 1 8 . 6 1 1 m . . Calculate the pressure in the liquid at the base of the column in Pa to the nearest...
-
A company pledges their receivables so they may Multiple Choice Charge a factoring fee. Increase sales. Recognize a sale. Collect a pledge fee. Borrow money. Failure by a promissory notes' maker to...
-
The question is the same as in problem 5 , but now the simple implicit scheme (6.34) is used. Consider two situations. a) The expected error must be less than \(\sim 10^{-4}\) for the entire...
-
Compare the schemes introduced for the linear convection equation. a) Simple explicit schemes (7.6), (7.7), and (7.8) b) Simple implicit scheme (7.19) c) Leapfrog scheme (7.21) d) Lax-Wendroff scheme...
-
Repeat Problem 7.1 for the following schemes applied to the one-dimensional heat equation. a) Simple explicit scheme \((7.28)\) b) Simple implicit scheme \((7.32)\) c) Crank-Nicolson scheme (7.34)...
Study smarter with the SolutionInn App