Information on four investment proposals is given below: 6 years D $ (120,000) 160,000 $ 40,000 6 years Investment required A B Present value of cash inflows $ (90,000) 126,000 $ 36,000 $ (100,000) 138,000 $ 38,000 Investment Proposal $ (70,000) 105,000 $ 35,000 5 years 7 years Net present value Life of the project 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 Proposal Rank Index Preference A BCD