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	$	(450,000	)	$	(540,000	)	$	(390,000	)	$	(420,000	)
Present value of cash inflows at a 8% discount rate		624,720			618,300			624,720			496,800
Net present value	$	174,720		$	78,300		$	234,720		$	76,800
Life of the project		7 years			14 years			7 years			4 years
Internal rate of return		19%			10%			24%			16%

Because the companys required rate of return is 8%, a 8% 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.