x T Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: A Investment required $ (790,000) $ (120, 000) Investment Proposal C $ (120,000) Present value of cash inflows Net present value 1. 121,300 $331,300 168,300 182,000 $ 48,300 Life of the project 5 years 7 years $ 60.000 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. Investment Profitability Rank Proposal Index Preference A B C D D $ (1,820,000) 2 427, 200 $607,200 6 years