Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Proposal B C D $(60,000) $(190,000) $(110,000) $(2,660,000) 88,600 260,600 168,600 3,551,000 $ 28,600 $ 70,600 $ 58,600 $ 5 years 7 years 6 years 891,000 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. Investment Profitability Proposal Index Rank Preference A 0.48 Second B C D 0.37 Third 0.53 First 0.33 Fourth