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please solve all Exercise 12-5 (Algo) Preference Ranking (L012-5) Information on four investment proposals is given below: Investment Proposal B D Investment required $ (350,000)

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Exercise 12-5 (Algo) Preference Ranking (L012-5) Information on four investment proposals is given below: Investment Proposal B D Investment required $ (350,000) $ (110,000) $ (130,000) $ (2,250,000) Present value of cash inflows 491,800 152,400 199,500 3,004,600 Net present value $ 141,880 $ 42,400 $ 69,500 $ 754,600 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 Profitability Index Rank Preference B 0.41 Second 0.39 Third 0.53 First 0.343 Fourth C D

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