Exercise 14-5 (Static) Preference Ranking (LO14-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Investment Proposal A B C D $(90,000) $(100,000) $(70,000) $(120,000) 126,000 138,000 105,000 160,000 $ 36,000 $ 38,000 $ 35,000 $ 40,000 Net present value Life of the project 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. Investment Profitability Proposal Index Rank Preference A B D