Information on four investment proposals is given below: Investment Proposal Investment required Present value of cash inflows $(116,000) $(126,000) $(96,000) $(159,000) 168,840 185,600 142,080 241,680 69,600 $ 42,840 $ 46,080 $ 82,680 Net present value 5 years 7 years 6 years 6 years Life of the project Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2. Rank the proposals in terms of preference. Project Profitability Investment Rank Proposal Preference Index A C

Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal D $(116,000) $(126,000) $(96,000) $(159,000) 185,600 168,840 142,080 241.680 $ 69,600 $ 42,840 $ 46,080 $ 82,680 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 B D