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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 A

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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 A B D $(130,000) $(140,000) $(158,000) S(1,260,000) 185,600 193,800 228,608 1,681,18 $ 55,600 $ 53,880 $ 78,600 $ 421,180 5 years 7 years 6 years 6 years Book Pret 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 Investment Profitability Proposal Index Rank Preference A B D

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