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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

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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 $(116,000) $(126,000) $196,000) $(159,000) 185,600 168,840 142,080 241, 680 $ 69,600 $ 42,940 $ 46,080 $ 82,680 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.) 2. Rank the proposals in terms of preference. Answer is complete but not entirely correct. Investment Project Rank Proposal Profitability Index Preference 1.60 First B 1.34 Fourth 1.48 Third D 1.52 Second

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