The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Investment required Present value of cash inflows Net present value Life of the project Internal rate of return 1 $ (270,000) 336, 140 $ 66,140 6 years 18% 2 $ (450,000) 522,970 $ 72,970 Project Number 3 years 19% $ (480,000) 567,270 14 $ 87,270 12 years 3 $ (360,000) 433,400 $ 73,400 14% 4 Required: 1. Compute the profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return. 6 years 16% The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the company can't accept all of the available projects.

The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return. The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return