Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value. Life of the project Investment Proposal B C D S(130,000) $(140, 000) $(150, 000) $(1, 260,000) 185,600 193,800 228,600 $ 55,600 $ 53,800 $ 78,600 $ 5 years 7 years 6 years 1,681,100 421,100 6 years Required: 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 C D