Information on four investment proposals is given below: A B Investment required Present value of cash inflows Net present value Life of the project $ (790,000) 1,121,300 $ 331,300 5 years $ (120,000) 168,300 Investment Proposal $ (120,000) 182,000 $ 48,300 7 years $ 62,000 6 years Required: D (1,820,000) 2,427,200 $ 607,200 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 6 years