The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 2 $ (440,000) 523,050 83.050 16 years Investment required Present value of cash inflows at a 12% discount rate Net present value Life of the project Intemal rate of return $ (490,000) 596,160 $ 106,160 8 years 18% $ (340,000) 447,120 $ 107.120 8 years $ (460,000) 540,750 80.750 $ 5 vears 19 % 15 % 21 % Because the company's required rate of return is 12%, a 12% 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 proftablity index for each investment project. (Round your answers to 2 decimal places) Profitability Index Project 1 3 4 2. Rank the four projects according to preference, in terms of net present value, project peoftabilty index and internal rate of return Project Profitability Index Internal Rate of Return Net Present Value First preference Second preference Third peeference 2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return. Project Profitability Index Net Present Internal Rate of Return Value First preference Second preference Third preference Fourth preference eBook & Resources References Leaming Objective: 08-05 Rank investmentprojocts in order o Difficulty: 1 Easy Worksheet Check my work