Exercise 12-5 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 Proposal $(270,000) $(90,000) $(100,000) $12,800,000) 393,500 127,100 151,300 3,738,500 $ 51,300 $ 938,500 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability Index for each Investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Rank Preference Project Profitability Index 1.46 X 1.41 1.51 1.34 First First First First OO