#5

Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal A B C D $(126,000) $(136,000) $(106,000) $(174,000) 186,480 179,520 148,400 278,400 $ 60,480 $ 43,520 $ 42,400 $ 104,400 5 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.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability Index Rank Preference A B D