Information on four investment proposals is given below:

		Investment Proposal
	A			B			C			D
Investment required	$	(420,000	)	$	(200,000	)	$	(170,000	)	$	(2,400,000	)
Present value of cash inflows		589,700			276,400			259,700			3,203,000
Net present value	$	169,700		$	76,400		$	89,700		$	803,000
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.

Investment Proposal	Project Profitability Index	Rank Preference
A		Second
B		Third
C		First
D		Fourth