6 4 Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: points A Investment required ellook Present value of cash inflows Hint Net present value $ (390,000) 551,000 $ 161,000 $ (30,000) 41,000 $ 11,000 Life of the project 5 years 7 years Investment Proposal $ (40,000) 64,100 $24,100 6 years D $ (600,000) 800,000 $ 200,000 6 years Print Required: References 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Profitability Proposal Index A B C D Rank Preference