The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows:

	Project Number
	1				2				3				4
Investment required	$	(630,000	)		$	(580,000	)		$	(430,000	)		$	(550,000	)
Present value of cash inflows at a 9% discount rate		672,900				665,973				538,320				708,680
Net present value	$	42,900			$	85,973			$	108,320			$	158,680
Life of the project		6 years				12 years				6 years				3 years
Internal rate of return		11	%			12	%			17	%			25	%

Because the companys required rate of return is 9%, a 9% discount rate has been used in the present value computations above. Limited funds are available for investment, so the company cant accept all of the available projects.

Required:

1. Compute the project profitability index for each investment project. (Round your answers to 2 decimal places.)

2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return.