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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 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: a. Net present value b. Profitability index c. Internal rate of return 3. Which ranking do you prefer? Why? 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: a. Net present value b. Profitability index c. Internal rate of return 3. Which ranking do you prefer? Why

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