Assume the following information for a capital budgeting proposal with a five year time horizon Initial investment: cost of equipment (zero salvage value $ 115,000 Annual revenues and costs: Sales revenues $ 300,000 Variable expenses $ 130,000 Depreciation expense $ 50,000 Fixed out-of-pocket costs $ 40,000 Click here to view Exhibit 148-1 and Exhibit 14B-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 1.18 1.22 113 O 1.08