Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: A B Investment required Present value of cash inflows $ (330,000) 480,000 $ (40,000) 56,500 Investment Proposal C $ (190,000) 286,700 Net present value $ 150,000 $ 16,500 $ 96,700 Life of the project 5 years 7 years 6 years Required: D $ (2,380,000) 3,178,500 $ 798,500 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 Rank Proposal Index Preference A B D