Exercise 12-5 (Algo) Preference Ranking (L012-5) Information on four investment proposals is given below: Investment Proposal c D Investment required $ 200,000) 5 (140,000) 5 (60,000) $ (1,300,000) Present value of cash inflows 421,200 196.500 94.300 1,214.60 Net present value $ 131,200 $ 56,500 5.34, 5.434,600 Life of the project 5 years 7 years 6 years 6 years 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. Investment Profitability Proposal Index Rank Preference B D