Exercise 12-5 Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment Proposal A B C D Investment required Present value of cash inflows Net present value Life of the project Required: $(130,000) $(140,000) $(110,000) $(180,000) 176,800 204,400 173,800 270,000 $ 46,800 $ 64,400 $ 63,800 $ 90,000 5 years 7 years 6 years 6 years 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 Project Profitability Index Rank Preference A B C D