nformation on four investment proposals is given below:

Investment Proposal

A B C D

Investment required $ $(60,000)$ $ $(70,000)$ $ $(40,000)$ $ $(990,000)$

Present value of cash inflows $88,00097,30064,2001,318,700$

Net present value $ $28,000$ $ $27,300$ $ $24,200$ $ $328,700$

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.