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: Project Investment Required Net Present Value Life of the Project (years) Internal Rate of Return (percent) A $160,000 44,323 7 18% B $135,000 42,000 12 16% C $100,000 35,035 7 20% D $175,000 38,136 3 22% 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.
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: Project Investment Required Net Present Value Life of the Project (years) Internal Rate of Return (percent) A $160,000 44,323 7 18% B $135,000 42,000 12 16% C $100,000 35,035 7 20% D $175,000 38,136 3 22% 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.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.6.8P
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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:
Project Investment Required
A $160,000 44,323 7 18%
B $135,000 42,000 12 16%
C $100,000 35,035 7 20%
D $175,000 38,136 3 22%
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.
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