Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (430,000) $ (50,000) $ (50,000) $ (1,820,000) Present value of cash inflows 631,600 70,500 76,800 2,429,200 Net present value $ 181,600 $ 20,500 $ 26,800 $ 609,200 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.)

investment proposal	project profitability index
A
B
C
D

2. Rank the proposals in terms of preference. _A B C D _C A B D _D C B A _B C A D