None Exercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5]Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selectedinformation on the four projects follows:ProjectInvestmentRequiredPresentValue ofCash InflowsLife oftheProjectInternalRate(years)of ReturnA$120,000$214,323717%B$ 143,000$ 187,0001218%C$ 105,000 $ 145,035720%cesD$ 171,000$ 223,136316%The net present values should be computed using a 10% discount rate. The company wants your assistance in determining whichproject 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.Complete this question by entering your answers in the tabs below.Required 1 Required 2Compute the profitability index for each project. (Round your answers to 2 decimal places.)ProjectProfitabilityIndexAB

Step 1: The calculation of the profitability index ABCDE1ProjectsInvestmentPV of cash…

Answered: Exercise 14-11 (Algo) Preference…

EBK CFIN

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Chapter11: The Cost Of Capital

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Exercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5] Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Project InvestmentRequired PresentValue of Cash Inflows Life oftheProject(years) InternalRateof Return A $ 200,000 $ 234,323 7 22% B $ 118,000 $ 207,000 12 19% C $ 103,000 $ 165,035 7 20% D $ 162,000 $ 243,136 3 17% 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.
Exercise 12-11 (Algo) 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: Project A B C D Investment Required $ 130,000 $ 136,000 $ 105,000 $ 169,000 Present value of Cash Inflows $ 249,323 $ 222,000 $ 180,035 $ 258, 136 Required 1 Required 2 Project Life of the Project (years) 7 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. A B C 12 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. 7 3 Complete this question by entering your answers in the tabs below. Profitability Index Internal Rate of Return 20% 18% 19% 17% Compute the profitability index for each project.…
Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Required: Investment Profitability Proposal Index A B C D A $ (60,000) 88,600 $ 28,600 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Rank Preference 5 years Investment Proposal C $ (110,000) 168,600 $ 58,600 B $ (190,000) 260,600 $ 70,600 7 years 6 years D $(2,660,000) 3,551,000 $ 891,000 6 years
Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A BUD В с D $ (280,000) 393,900 $ 113,900 Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Rank Preference. 5 years Investment Proposal C $ (50,000) 78,100 $28,100 B $ (140,000) 192,800 $ 52,800 7 years 6 years D $ (780,000) 1,038, 100 $ 258, 100 6 years.
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 InvestmentRequired NetPresentValue Life oftheProject(years) InternalRateof Return A $ 870,000 $ 576,770 9 25 % B $ 755,000 $ 308,594 14 17 % C $ 720,000 $ 442,949 9 24 % D $ 920,000 $ 145,122 5 16 % 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 Project Project Profitability Index A B C D
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 InvestmentRequired NetPresentValue Life oftheProject(years) InternalRateof Return A $ 870,000 $ 576,770 9 25 % B $ 755,000 $ 308,594 14 17 % C $ 720,000 $ 442,949 9 24 % D $ 920,000 $ 145,122 5 16 % 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. Compute the project profitability index for each project. (Round your answers to 2 decimal places.) Project Project Profitability Index A B C D
Which of the following statement is true? * IRR and discount rate all have the same meaning.... If BCR is less than zero, an investment to a conservation project is worthwhile.... Both of them are true
Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Life of the Present Project Net Internal Investment Rate Value $576,770 $755,000 ș308,594 $720,000 $442,949 $920,000 $145,122 Project Required (years) of Return 9 A $870,000 25% в 14 178 9 248 D 168 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. Required 1 Required 2 Compute the project profitability index for each project. (Round your answers to 2 decimal places.) Project Profitability Project Index A В D
Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (390,000) $ (30,000) $ (40,000) $ (600,000) Present value of cash inflows 551,000 41,000 64,100 800,000 Net present value $ 161,000 $ 11,000 $ 24,100 $ 200,000 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference.
Oxford Company has limited funds available for investment and must ration the funds among the four competing projects shown below: Project Required A Inflows $ 120,000 $ 239,323 $ 133,000 $ 212,000 $ 102,000 $ 170,035 $ 172,000 $ 248,136 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. B Present Investment Value of Cash C D Required 1 Required 2 Life of the Project (years) 7 12 7 Complete this question by entering your answers in the tabs below. Project A Compute the profitability Index for each project. Note: Round your answers to 2 decimal places. 3 Profitability Index Internal Rate of Return 20% 22% 19% 21% Prev 5 of 5 www Next
Problem 13-11 MIRR (LG13-4) Compute the MIRR statistic for Project I if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project I Time: Cash flow: 0 1 -$11,600 $5,630 $4,480 2 3 $1,820 4 $2,300 MIRR % ces Should the project be accepted or rejected? O rejected accepted
TB 13-47 (Appendix 13A) The following data pertain to an investment (Appendix 13A) The following data pertain to an investment proposal: Present Investment Required $27,130 Annual Cost Savings $5,000 Projected life the investment 10 years Projected Salvage Value $-0- What would be the internal rate of return? (Ignore income taxes in this problem.) Multiple Choice 5.426%. 13.0%. 54.26%. О 542.6%.

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