nts Information on four investment proposals is given below: A B Investment required Present value of cash inflows Net present value $ (420,000) 589,700 $ 169,700 $ (200,000) 276,400 Investment Proposal C $ (170,000) 259,700 $ 76,400 $ 89,700 Life of the project 5 years 7 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 Profitability Rank Proposal Index Preference A 0.40 Second B 0.38 Third C 0.53 First D 0.33 Fourth D $ (2,400,000) 3,203,000 $ 803,000 6 years