Information on four investment proposals is given below: Investment Proposal A B Investment required Present value of cash inflows Net present value Life of the project $ (90,000) 126,000 $ 36,000 5 years $ (100,000) 138,000 $ 38,000 $ (70,000) 105,000 $ 35,000 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 Proposal Index Rank Preference ABCD D $ (120,000) 160,000 $ 40,000 6 years