Question: Information on four Investment proposals is given below: Investment Proposal A B C D Investment required $ (420, 080) $ (200, 080) $ (170,080) $

Information on four Investment proposals is given below: Investment Proposal A B C D Investment required $ (420, 080) $ (200, 080) $ (170,080) $ (2,400,080) Present value of cash inflows 589, 708 276,408 259, 708 3, 203, 060 Net present value $ 169,708 $ 76,408 $ 89,708 $ 803, 060 Life of the project 5 years 7 years 6 years 6 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. Investment Profitability Rank Proposal Index Preference A B C D

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