Information on four investment proposals is given below:

		Investment Proposal
	A		B		C		D
Investment required	$	(330,000)	$	(40,000)	$	(190,000)	$	(2,380,000)
Present value of cash inflows		480,000		56,500		286,700		3,178,500
Net present value	$	140,000	$	16,500	$	96,700	$	798,500
Life of the project		5 years		7 years		6 years		6 years

Required:
1.	Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.)

2.

Rank the proposals in terms of preference.

	D C B A
	A B C D
	C A B D
	B C A D

Project Investment Profitability Proposal Index