Information on four investment proposals is given below: Investment required Present value of cash inflows Investment Proposal A B 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 Net present value Life of the project 5 years 7 years 6 years 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. X Answer is complete but not entirely correct. Investment Proposal Profitability Index Rank Preference A 0.40 X Second B 0.38 X Third C 0.50 X First D 0.33 X Fourth