Information on four investment proposals is given below:

Investment Proposal

A

B

C

D

$ (430,000) $ (70,000) $ (80,000) $ (2,850,000)

633,500

98,700

124,400

3,804,200

$ 203,500 $ 28,700 $ 44,400 $

954,200

5 years 7 years

6 years

6 years

D A B B A

E

Help

Save & Exit

Su

Investment required

Present value of cash inflows

Net present value

Life of the project

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.