Information on four investment proposals is given below: Investment Proposal D Investment required P
Information on four investment proposals is given below: Investment Proposal D Investment required Present value of cash inflows Net present value Life of the project $(290,000) $ (140,000) S (60,000) $ (1,300,000) 421,200 196,500 94,300 1,734,600 $ 131,200 $ 56,500 $ 34,300 $ 434,600 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference Investment Proposal Project Profitability Index Rank Preference Second Third B First Fourth

