Scioto Valley Convalescent Center is considering buying a $25,000 computer to improve its medical record and accounting functions. It is estimated that, with the computer, operating costs will be reduced by $7,000 per year.

The computer has an estimated 5-year life with an estimated $5,000 salvage value. What is this investment’s profitability index if the discount rate is 8%? Ignore reimbursement considerations.