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Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (790,000) $ (120,000) $ (120,000) $ (1,820,000) Present

Information on four investment proposals is given below:

Investment Proposal

A B C D
Investment required $ (790,000) $ (120,000) $ (120,000) $ (1,820,000)
Present value of cash inflows 1,121,300 168,300 182,000 2,427,200
Net present value $ 321,300 $ 48,300 $ 62,000 $ 607,200
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.)

A -

B -

C-

D -

2.

Rank the proposals in terms of preference.

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