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	$	(600,000	)	$	(550,000	)	$	(400,000	)	$	(520,000	)
Present value of cash inflows at a 8% discount rate		747,110			646,123			660,905			638,880
Net present value	$	147,110		$	96,123		$	260,905		$	118,880
Life of the project		8 years			16 years			8 years			5 years
Internal rate of return		14%			11%			23%			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.)

Project	Profitability Index
1
2
3
4