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2 Exercise 14-5 (Static) Preference Ranking (LO14-5) Information on four investment proposals is given below: 2 points Skipped Investment required Present value of cash inflows

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2 Exercise 14-5 (Static) Preference Ranking (LO14-5) Information on four investment proposals is given below: 2 points Skipped Investment required Present value of cash inflows Net present value Life of the project Investment Proposal D $(90,000) $(100,000) $(70,000) $(120,000) 126,000 138,000 105,000 160,000 $ 36,000 $ 38,000 $ 35,000 $ 40,000 5 years 7 years 6 years 6 years eBook OD Hint Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Print Investment Profitability Proposal Index Rank Preference A References B D

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