Information on four investment proposals is given below:

Investment Proposal

A B C D

Investment required $ (300,000) $ (140,000) $ (100,000) $ (1,500,000)

Present value of cash inflows 424,800 191,700 151,100 2,001,700

Net present value $ 124,800 $ 51,700 $ 51,100 $ 501,700

Life of the project 5 years 7 years 6 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.

PLS HELP WITH REQUIRED SECTIONS 1-2