Jason Corporation is investigating four different opportunities. Information on the four projects under study is as follows: Project 1 Project 2 Project 3 Project 4 Investment required $500,000 $800,000 $600,000 $500,000 PV of cash inflows $650,000 $900,000 $675,000 $450,000 Life of project 4 years 6 years 5 years 7 years The companys required rate of return is 12%; therefore, a 12% discount rate has been used in the present value computations above. Limited funds are available for investment, so the company cannot accept all of the available projects.

a) Based on NPV ranking, which project should have last preference for acceptance?

b) Based on PI ranking, which project should have first preference?