Assume the following information for a capital budgeting proposal with a five-year time horizon: $415,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs $300,000 $130,000 $ 50,000 $ 40,000 Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using the tables provided Assuming a discount rate of 12%, this proposal's profitability index is closest to Multiple Choice 1.08. O O 1.22 (0 O 1.13. 1.18