Information on four investment proposals is given below:

Investment Proposal

A B C D

Investment required $ $(240,000)$ $ $(105,000)$ $ $(73,500)$ $ $(126,000)$

Present value of cash inflows $337,300144,900110,250168,000$

Net present value $ $97,300$ $ $39,900$ $ $36,750$ $ $42,000$

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.