Information on four investment proposals is given below: A B Investment required Present value of cash inflows $ (60,000) 88,600 Net present value $ 28,600 $ (190,000) 260,600 $ 70,600 Investment Proposal $ (110,000) 168,600 $ 58,600 Life of the project 5 years 7 years 6 years Required: D $ (2,660,000) 3,551,000 $ 891,000 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Answer is complete but not entirely correct. Investment Profitability Proposal Index Rank Preference A 0.48 Second B 0.37 Third 0.53 First D 0.33 Fourth 6 years