Information on four investment proposals is given below:

Required:
1. Compute the project profitability index for each investment proposal.
2. Rank the proposals in terms ofpreference.

nvestment Proposa Investment required $(85,000) $(200,000) $(90,000) $(170,000) Present value of cash inflows. Net present value. Life of the project.. 119,000 250,000 135,000 221,000 $ 34,000 50,000 $ 45,000 51,000 5 years 7 years 6 years 6years