Q$5.$ nformation on four investment proposals is given below:

Investment Proposal

A B C D

Investment required $ $(120,000)$ $ $(50,000)$ $ $(50,000)$ $ $(360,000)$

Present value of cash inflows $169,20067,30079,000476,000$

Net present value $ $49,200$ $ $17,300$ $ $29,000$ $ $116,000$

Life of the project $5$ years $7$ years $6$ years $6$ years

Required:

$1.$ Compute the profitability index for each investment proposal.

Note: Round your answers to $2$ decimal places.

$2.$ Rank the proposals in terms of preference.