Problem 14-21 (Static) Preference Ranking of investment Projects [LU 14-5) 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 inflow Not present value Life of the project Internal rate of return $(270,000) 336, 140 $ 66,140 4 years 185 $(450,000 522, 970 $ 72,970 3 years 195 $(360,000) 431,400 $ 73,400 $(480,000) 569, 270 87,270 6 years 165 12 years 145 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 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 1 2 Profitability Index 0.24 0.16 0.20 0.18 3 4