Information on four investment proposals is given below:

Investment Proposal

A B C D

Investment required $ $(60,000)$ $ $(190,000)$ $ $(110,000)$ $ $(2,660,000)$

Present value of cash inflows $88,600260,600168,6003,551,000$

Net present value $ $28,600$ $ $70,600$ $ $58,600$ $ $891,000$

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.