Information on four investment proposals is given below: Investment required Present value of cash inflows Investment Proposal A D $ (390,000) $ (30,000) $ (40,000) $ (600,000) 551,000 41,000 64,100 800,000 $ 161,000 $ 11,000 $ 24,100 $ 200,000 5 years 7 years 6 years 6 years 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. Answer is complete but not entirely correct. Project Rank Investment Proposal Profitability Preference Index 0.42X 0.37 0.51 X 0.33 Second Third First Fourth D L Lukow Products is investigating the purchase of a piece of automated equipment that will save $150,000 each year in direct labor and inventory carrying costs. This equipment costs $860,000 and is expected to have a 6-year useful life with no salvage value. The company's required rate of return is 14% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows. Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the net present value of the piece of equipment before considering its intangible benefits? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. What minimum dollar value per year must be provided by the equipment's intangible benefits to justify the $860,000 investment? (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) & Answer is complete but not entirely correct. $ Net present value Minimum dollar value 276,695 X 71,137