Information on four investment proposals is given below: Investment required Present value of cash inflows $ (130,000) 185,600 Investment Proposal BCD $ (140,000) $ (150,000) $ (1,260,000) 193,800 228,600 1,681,100 $ 53,800 $ 78,600 $ 421,100 Net present value 55,600 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.) Project Investment Profitability Proposal Index 2. Rank the proposals in terms of preference. OBCAD OCABD ODCBA OABCD The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $50,000. The machine would replace an old piece of equipment that costs $13,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use is fully depreciated and could be sold now for a scrap value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: Compute the simple rate of return on the new automated bottling machine. Choose Numerator: Simple rate of return Choose Denominator: = Simple Rate of Return Simple rate of return