Information on four investment projects being investigated by Clenning Company is as follows:

	Project Number
	1			2			3			4
Investment required	$	(440,000	)	$	(390,000	)	$	(290,000	)	$	(410,000	)
Present value of cash inflows at a 10% discount rate		575,900			483,859			345,540			479,050
Net present value	$	135,900		$	93,859		$	55,540		$	69,050
Life of the project		9	years		18	years		9	years		6	years
Internal rate of return		17	%		14	%		15	%		16	%

Since the companys required rate of return is 10%, a 10% discount rate has been used in the present value computations above. Limited funds are available for investment, so the company cant accept all of the available projects.

Required: 1. Compute the project profitability index for each investment project. (Round your answers to 2 decimal places.)

2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return.

3. Not available in Connect.