Question: Please answer in proper format with all working clearly Information on four investment proposals is given below: Investment Proposal A B C D Investment required

Please answer in proper format with all working clearly

Information on four investment proposals is given below: Investment Proposal A B C D Investment required $ (90,090) $ (100, 000) $ (70, 000) $ (120, 090) Present value of cash inflows 126, 000 138, 900 105, 000 160, 900 Net present value $ 36,000 $ 38,000 $ 35,000 $ 40,900 Life of the project 5 years 7 years 6 years 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

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