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 $ (410,000 ) $ (360,000 ) $ (260,000 ) $ (380,000 ) Present value of cash inflows at a 10% discount rate 484,545 415,629 326,594 447,684 Net present value $ 74,545 $ 55,629 $ 66,594 $ 67,684 Life of the project 6 years 12 years 6 years 3 years Internal rate of return 16 % 13 % 18 % 20 % 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. 2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return.