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	$	(480,000	)	$	(430,000	)	$	(200,000	)	$	(470,000	)
Present value of cash inflows at a 12% discount rate		547,680			497,100			251,020			607,400
Net present value	$	67,680		$	67,100		$	51,020		$	137,400
Life of the project		7 years			14 years			7 years			4 years
Internal rate of return		16%			15%			20%			25%

Because the companys required rate of return is 12%, a 12% 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.