Information on four investment proposals is given below:

		Investment Proposal
	A				B				C				D
Investment required	$	(790,000	)		$	(120,000	)		$	(120,000	)		$	(1,820,000	)
Present value of cash inflows		1,121,300				168,300				182,000				2,427,200
Net present value	$	331,300			$	48,300			$	62,000			$	607,200
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.

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

rev: 11_26_2016_QC_CS-70354