The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows Proiect Number Investment required Present value of cash inflows at a $ (450, 000) (540,000) (390,000) (340,000) 549,775 $ 99,775 6 years 8% discount rate Net present value Life of the project 416,102 175,947 26,102 6 years 715,947 399,353 59,353 3 years 12 years Internal rate of return 14% 17% 15% 10% Because the company's required rate of return is 8%, a 8% discount rate has been used in the present value computations above Limited funds are available for investment, so the company can't accept all of the available projects Required 1. Compute the project profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return