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 Net present value $ (120,000) 172,000 $ 52,000 $ (180,000) 250,000 $ (30,000) 48,600 $ 70,000 $ 18,600 Life of the project 5 years 7 years 6 years Required: D $ (1,560,000) 2,081,000 $ 521,000 6 years 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 Rank Index Preference A B C D