Problem 14-21 (Static) Preference Ranking of Investment Projects (LO14-5] The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Investment required Present value of cash inflows Net present value Life of the project Internal rate of return 1 $(270,000) 336,140 $ 66,140 6 years 18% Project Number 2 3 $(450,000) $(360,000) 522,970 433,400 $ 72,970 $ 73,400 3 years 12 years 19% 14% 4 $(480,000) 567,270 $ 87,270 6 years 16% The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the profitability index for each investment project. (Round your answers to 2 decimal places.) Project Profitability Index 1 0.24 x 2 0.16 x 3 0.20 x 4 0.18 X Required 1 Required 2