subject : management accounting for human resources

The management of Revco Products is exploring five different investment opportunities. Information on the five projects under study follows: The company's required rate of return is 7\%; thus, a 7% discount rate has been used in the preceding present value computations. Limited funds are available for investment, and so the company cannot accept all of the avallable projects. Required: 1. Compute the profitability index for each investment project. (Round your answers to 2 decimal places.) 2. Rank the five projects according to preference, in terms of (a) net present value, (b) profitability index