ABC Company is considering the purchase of a new machine that would cost $500,000.The machine would have a useful life of 10 years.ABC Company plans on using straight-line depreciation with an estimated salvage value of $0.ABC Company has a hurdle rate of 10% and is subject to an income tax rate of 40%.The annual cash income is estimated to be $125,000. PV TABLES CAN BE FOUND ATTACHED.

6.The Profitability Index (PI) is:

A.1.17

B.1.27

C.1.37

D.1.47