Exercise $14-5($Algo$)$ Preference Ranking $[$LO$14-5]$

Information on four investment proposals is given below:

Investment Proposal

A B C D

Investment required $ $(270,000)$ $ $(90,000)$ $ $(100,000)$ $ $(2,800,000)$

Present value of cash inflows $393,500127,100151,3003,738,500$

Net present value $ $123,500$ $ $37,100$ $ $51,300$ $ $938,500$

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

Required:

Compute the profitability index for each investment proposal.

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

Rank the proposals in terms of preference.