Problem 12-21 Preference Ranking of Investment Projects [L012-5] The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study Project Number s(27e,ee8) $(45e,eee) $(360,eee) s(48e,eee) 336,148 522,978 433,4 567,278 66,148 72,97e 73,400 87,27e 6 years 3 years 12 years 6 years Present value of cash inflos at a 10% discount Net present value Life of the project Internal rate of return 18% 19% 14% 16% Because the compan s required rate of return is 0, a 10% discourt rate has been used in the present value computations above. Limited funds are available for investment, so the company can't accept all of the available projects. 1. Compute the project profitability index for each investment project 2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return. Prev 9 of 9 lSE Next > 0