Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A B C D A $ (150,000) 211,800 $ 61,800 5 years Rank Preference Investment Proposal C $ (160,000) 241,600 $ 81,600 6 years B $ (80,000) 110,400 $ 30,400 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. 7 years D. $ (910,000) 1,214,500 $ 304,500 6 years

Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preterence