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	$	(410,000	)	$	(360,000	)	$	(260,000	)	$	(380,000	)
Present value of cash inflows at a 10% discount rate		479,050			415,654			326,625			447,660
Net present value	$	69,050		$	55,654		$	66,625		$	67,660
Life of the project		6 years			12 years			6 years			3 years
Internal rate of return		16%			13%			18%			20%

Because the companys 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 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.