Investment Proposal B D Investment required $ (90,000) $ (100,000) $ (70,000) $ (120,000) Present value of cash inflows 126,000 138,000 105,000 160,000 Net present value $ 36,000 $ 38,000 $ 35,000 $ 40,000 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. Answer is complete but not entirely correct. Investment Proposal A Profitability Rank Index Preference 0.40 Second 0.38 X Third 0.50 First 0.33 X Fourth B >> D