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 D $(90,000) $(180,000) $(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 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. Answer is complete but not entirely correct. Investment Proposal Profitability Rank Index Preference 0.40 Second 0.38 Third 0,50 % First 0.33 Fourth B C D