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#2 (10 points) Investment Proposal A B C D Investment Required $(90,000) $(100,000) $(70,000) $(120,000) Present Value of Cash Inflows 126,000 138,000 105,000 160,000 Net

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#2 (10 points) Investment Proposal A B C D Investment Required $(90,000) $(100,000) $(70,000) $(120,000) Present Value of Cash Inflows 126,000 138,000 105,000 160,000 Net Present Value $36,000 $38,000 $35,000 $40,000 a) Compute the Profitability Index for each investment proposal. b) Rank the proposals in terms of preference (with #1 being the best and #4 being the worst)

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