Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash inflow is $24,000 annually. Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178, and the present value of an annuity for 3 periods at 12% is 2.40183, the profitability index is: 0.04 1.96 1.04 0.28 0.96

Bassinger Company plans to buy a new machine for $60,000 that will have an estimated useful life of 3 years and no salvage value. The expected cash infliow is 52,000 annually Bassinger Company has a cost of capital of 12%. Given that the present value of $1 after 3 periods at 12% is 0.71178 , and the present value of an annuity for 3 peeriods at 12% ti 2.40183, the profitability index is: 0.04 1.96 1.04 0.28 0.96