Information on four investment proposals is given below: Investment required Present value of cash inflows Investment Proposal D $(90,000) $ (100,000) $ ( 70,000) $ (120,000) 126,000 138,000 105,000 160,000 $ 36,000 $ 38,000 $ 35,000 $ 40,000 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. Investment Proposal Project Rank Profitability Preference Index 1.40 Second 1.38 Third 1.50 First 1.33 Fourth B