Assume that a company is considering purchasing a machine for $$50,500$ that will have a five$-$year useful life and no salvage value. The machine

lower operating costs by $$17,000$ per year. The company's required rate of return is $18\%.$ The profitability index for this investment is closest to:

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using the tables provided.

Multiple Choice

$0\mathrm{.}95.$

$1\mathrm{.}01.$

$1\mathrm{.}05.$

$1\mathrm{.}11.$