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 Required 1 Required 2 Project Number Complete this question by entering your answers in the tabs below. 3 years 19% 3 $ (360,000) 433,400 $ 73,400 12 years 14% 4 $ (480,000) 567,270 $ 87,270 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. 6 years 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. Compute the profitability Index for each Investment project. (Round your answers to 2 decimal places.) 16%

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 tate Limited funds are available for investment, so the company can't accept all of the avallable 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. Complete this question by entering your answers in the tabs below. Compute the prontability index for each investment project. (Round your answers to 2 decimal places.) The management of Revco Products is expioring four different investment opportunties. 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. Complete this question by entering your answers in the tabs below. Compute the proritability index for each investment project. (Round your answers to 2 decimal placos.)