Exercise 12-5 Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (128,000 ) $ (138,000 ) $ (108,000 ) $ (177,000 ) Present value of cash inflows 184,320 204,240 164,160 283,200 Net present value $ 56,320 $ 66,240 $ 56,160 $ 106,200 Life of the project 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.

Information on four investment proposals is given below: 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