Yancey Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows:

Project	Investment Required	Net Present Value	Life of the Project (years)	Internal Rate of Return
A	$830,000	$240,960	7	18%
B	$660,000	$225,820	12	17%
C	$530,000	$175,860	7	19%
D	$730,000	$165,320	3	22%

The net present values above have been computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, which to accept second, and so forth. The companys investment funds are limited.

Required:
1.	Compute the project profitability index for each project. (Round your answers to 2 decimal places.)

Project	Profitability Index
A
B
C
D

2.	In order of preference, rank the four projects in terms of net present value, project profitability index and internal rate of return.

	Net Present Value	Project Profitability Index	Internal Rate of Return
First preference	(Click to select)ABCD	(Click to select)BCAD	(Click to select)DCAB
Second preference	(Click to select)ABCD	(Click to select)BCAD	(Click to select)DCAB
Third preference	(Click to select)ABCD	(Click to select)BCAD	(Click to select)DCAB
Fourth preference	(Click to select)ABCD	(Click to select)BCAD	(Click to select)DCAB