Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment Proposal A B C Investment required Present value of cash inflows $ (60,000) 86,600 Net present value $ 26,600 $ (130,000) 181,100 $ 51,100 $ (140,000) 213,900 $ 73,900 Life of the project 5 years 7 years 6 years Required: D $ (2,100,000) 2,803,200 $ 703,200 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 Ranki Preference A B C D 6 years