The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study Follows: Project Number 2 Investment required Present value of cash inflows Net present value $ (270,000) 336,140 $ 66,140 $ (450,000) 522,970 $ 72,970 Life of the project Internal rate of return 6 years 18% 3 years 19% $ (360,000) 433,400 $ 73,400 12 years 148 $ (480,000) 567,270 $ 87,270 6 years 168 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.