Information on four investment projects being investigated by Chening Company is as follows 2 Project Number 5 2 3 Investment required 4 $ 490,000 $ 440.000 Net present value $ 340,000 5 4460,000 $ 105 160 $83,050 $ 107,120 6 Life of the project in years) $ 80,750 83050 W 8 16 8 5 2 Internal Rate of Return 18% 15% 21% 19% 8 Present value of cash flows $383,840 $356,950 $232,880 $379,250 Since the company's required rate of return is 12%, a 12% discount rate has been used in the present value computations above. Limited funds are 9 available for investment, so the company cannot accept all of the available projects O 1 Required: 2 1 Compute the project profitability index for each project. (4 marks) Round the final answers to 2 decimal places 3 Project Profitability index 0.78 0.81 0.68 Project 1 Project 2 Project 3 Project 4 082 in order of preference, rank the four projects in terms of net present value, project profitability index and internal rate of return (3 marks) 2 Project Net Present Profitability Internal Rate Value index of Return Proiect 2 Proiect 2 Proiect 3 First preference > PIV2 New. CE $ 106, 160 17 Project 1 Project 2 Project 3 Project 4 1 IS 19 In order of preference, rank the four projects in terms of net present value, project profitability index and internal rate of return. (3 martes) 20 2 21 22 Project Net Present Profitability Internal Rate Value Index 23 First preference of Return Project 2 Project 2 24 Second preference Project 3 Project 3 Project 3 Project 4 125 Third preference Project 1 Project 1 Project 1 26 Fourthe preference Project 4 Project 4 Project 2 27 283. If the company has $1,000,000 available to invest in which project(s) should be selected and why? (3 martes) 29 Investment 30 Required 31 Project 1 32 Project 2 33 Project 3 34 Project 4 35 Total invested 36 37 Reason: 38 39 PI V2 New