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	$	(570,000	)	$	(500,000	)	$	(370,000	)	$	(540,000	)
Present value of cash inflows at a 11% discount rate		647,790			637,040			477,009			706,800
Net present value	$	77,790		$	137,040		$	107,009		$	166,800
Life of the project		10 years			20 years			10 years			7 years
Internal rate of return		14%			15%			18%			20%

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.