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Assume that a company purchased a new machine for $ 1 9 , 0 0 0 that has a salvage value of $ 3 ,

Assume that a company purchased a new machine for $19,000 that has a salvage value of $3,000 at the end of its useful life of five years. The machine is expected to save the company $6,000 a year in cash operating costs for five years. The companys discount rate is 14%. The profitability index of this investment opportunity is closest to:

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