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	$	(550,000	)	$	(500,000	)	$	(400,000	)	$	(520,000	)
Present value of cash inflows at a 11% discount rate		617,520			664,110			463,140			628,320
Net present value	$	67,520		$	164,110		$	63,140		$	108,320
Life of the project		8 years			16 years			8 years			5 years
Internal rate of return		14%			16%			15%			19%

Because the companys required rate of return is 11%, a 11% 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. First preference second preference third perference Fourth Preference of net present value, project profitability index and internal rate of return