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

	Project Number
	1			2			3			4
Investment required	$	(460,000	)	$	(410,000	)	$	(310,000	)	$	(430,000	)
Present value of cash inflows at a 12% discount rate		534,420			496,925			385,970			546,480
Net present value	$	74,420		$	86,925		$	75,970		$	116,480
Life of the project		11	years		22	years		11	years		8	years
Internal rate of return		16	%		15	%		17	%		19	%

Since the companys required rate of return is 12%, a 12% 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.