QUESTION 4 Preference Ranking Information on four investment proposals is given below: Investment Proposal D A B Investment required $(85,000) Present value of cash flows 199,000 $(200,000) $(80,000) 255,000 135,000 $(190,000) 221,000 Net present value Life of the project $34,000 5 years $50,000 7 years $45,000 6 years $51,000 6 years Required: 1. Compute the project profitability index for each investment proposal 2. Rank the proposals in terms of preference