Exercise 14-5 (Static) Preference Ranking (LO14-5) Information on four investment proposals is given below: Investment Proposal Investment required Prenent value of cash intown Not present value Life of the project $190,000) $100,000) (10.000) 5 (120,000) 126,000 130.000 105,000 160.000 36,000 38,000 $ 35,000 $40,000 5 years 7 years 6 years 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, Answer is complete but not entirely correct. Investment Proposal Profitability Rank Index Preference 040 Second 0.38 Third 0.50 First 0.333 Fourth B C D