Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: A Investment required Present value of cash inflows Ook Net present value $ (350,000) 491,800 $ 141,800 Life of the project 5 years: int nt Required: 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Rank ences Proposal Index Preference A B C D B Investment Proposal $ (110,000) 152,400 $ 42,400 7 years $ (130,000) 199,500 $ 69,500 6 years D $ (2,250,000) 3,004,600 $ 754,600 6 years