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	$	(510,000	)	$	(460,000	)	$	(360,000	)	$	(480,000	)
Present value of cash inflows at a 10% discount rate		614,500			553,410			460,875			632,840
Net present value	$	104,500		$	93,410		$	100,875		$	152,840
Life of the project		10 years			20 years			10 years			7 years
Internal rate of return		15%			13%			16%			19%

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.