The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows:

t Number 4 2 415,654 55,654$ 66,625 S 67,660 12 years Investment required Present value of cash inflows at a 10% discount rate S(410,000) $(360,000) $(260,000) $(380,000) 447,660 326,625 479,050 $ 69,050 6 years Net present value Life of the project Internal rate of returrn 6 years 18% 3 years 20% 16% 13% Because the company's required rate of return is 10%, a 10% 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