Information on four investment proposals is given below:

Investment ProposalABCDInvestment required$(150,000)$(80,000)$(160,000)$(910,000)Present value of cash inflows211,800110,400241,6001,214,500Net present value$61,800$30,400$81,600$304,500Life of the project5 years7 years6 years6 years

Required:

1. Compute the project profitability index for each investment proposal.(Round your answers to 2 decimal places.)

The Investment Proposal Project Profitability Index

A

B

C

D

2. Rank the proposals in terms of preference.

A B C DD C B AC A B DB C A D