Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (120,000 ) $ (180,000 ) $ (30,000 ) $ (1,560,000 ) Present value of cash inflows 172,000 250,000 48,600 2,081,000 Net present value $ 52,000 $ 70,000 $ 18,600 $ 521,000 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.

A ?

B ?

C?

D?