Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A B C D A $ (420,000) 589,700 $ 169,700 Rank Preference 5 years Investment Proposal B $ (200,000) 276,400 $ 76,400 7 years $ (170,000) 259,700 $ 89,700 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. 6 years D $ (2,400,000) 3,203,000 $ 803,000 6 years

Information on four investment proposals is given below: 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