The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: 4 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 2 $ (450,000) 522,970 $ 72,970 Project Number 3 $ (360,000) 433,400 $ 73,400 $ (480,000) 567,270 $ 87,270 6 years 16% 6 years 18% 3 years 19% 12 years 14% 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