Assume that a company purchased a new machine for $18,000 that has a salvage value of $5,000 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 12%. The profitability index of this investment opportunity is closest to:

Multiple Choice

1.33.

1.36.

1.43.

1.46.