Information on four investment proposals is given below: A B Investment required Present value of cash inflows Net present value $ (390,000) 551,000 $ 161,000 $ (30,000) Investment Proposal C $ (40,000) 41,000 64,100 $ 11,000 $ 24,100 Life of the project 5 years 7 years 6 years Required: 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 Rank Proposal Index Preference A B C D D $ (600,000) 800,000 $ 200,000 6 years