Information on four investment proposals is given below: A B Investment required Present value of cash inflows Net present value Life of the project $ (120,000) 169,200 $ 49,200 5 years $ (50,000) 67,300 $ 17,300 Investment Proposal C $ (50,000) 79,000 $ 29,000 7 years Required: 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 B C D D $ (360,000) 476,000 $ 116,000 6 years