Justin Timberlake, Inc. is investigating four different investment opportunities. Information on the four projects under study is given below:
Project Number

Because the company's 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 can't accept all of the available projects.
Required:
1. Compute the project profitability index for each investment project. (Round your answers to 3 decimal places.)

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4 (420,000(370,000 S (270,000(390,000) Present value of cash inflows at a 10% discount rate 507,200 456,754 360,232 Net present value 115,480S 86,75490,232 S 117,200 7 years 14 years years 4 years Internal rate of return i縸체 14% 23%