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	$	(420,000	)	$	(370,000	)	$	(270,000	)	$	(390,000	)
Present value of cash inflows at a 10% discount rate		535,480			456,754			360,232			507,200
Net present value	$	115,480		$	86,754		$	90,232		$	117,200
Life of the project		7 years			14 years			7 years			4 years
Internal rate of return		18%			14%			20%			23%

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.