Exercise 7-5 (Algo) Preference Ranking (LO7-5) Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal D $(120,000) $ (180,000) $ (30,000) $ (1,560,000) 172,000 250,000 48,600 2,081,000 $ 52,000 $ 70,000 $ 18,600 $ 521,000 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Rank Project Profitability Index Preference B