Problem 12-21 Preference Ranking of Investment Projects [LO12-5] The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows Project Number Investment required Present value of cash inflows at a $ (560, 000) (510,000) (410,000) (350,000) 440,021 $ 32,636 67,822 42,691 90,021 3 years 592,636 577,822 452,691 11% discount rate Net present value Life of the project 6 years 12 years 6 years Internal rate of return 25% 13% 14% 15% Because the company's required rate of return is 11%, a 11% discount 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 Required: 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 Required 1Required 2 Compute the project profitability index for each investment project. (Round your answers to 2 decimal places.) Project Profitability Index 2 4 Required 1Required 2 Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return Project Internal Rate Net Present Profitability of Return Value Index First preference Second preference Third preference Fourth preference