Information on four investment proposals is given below: A B Investment required Present value of cash inflows $ (150,000) 211,800 $ (80,000) 110,400 Investment Proposal $ (160,000) 241,600 Net present value $ 61,800 $ 30,400 $ 81,600 Life of the project 5 years 7 years 6 years Required: D $ (910,000) 1,214,500 $ 304,500 6 years 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 BC D