22.

Information on four investment proposals is given below:

		Investment Proposal
	A		B		C		D
Investment required	$	(85,200)	$	(201,000)	$	(95,000)	$	(174,000)
Present value of cash inflows		120,200		256,000		143,000		226,000
Net present value	$	35,000	$	55,000	$	48,000	$	52,000
Life of the project		8 years		7 years		6 years		6 years

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

Proposal	Project Profitability Index
A
B
C
D

2.

Rank the proposals in terms of preference.

	B C A D
	A B C D
	C A D B
	D C B A