Carnes Company is considering the purchase of new equipment costing $30,000 with a 6-year estimate useful life. The new equipment is expected to provide annual cost savings of $7,300 and will be depreciated using the straight-line method over its expected useful life with no expected salvage value at the end of its useful life. Carnes Company requires a 10% rate of return. What is the approximate profitability index associated with this equipment? Present Value of an Annuity of 1

Period	8%	9%	10%	11%	12%	15%
6	4.623	4.486	4.355	4.231	4.111	3.784

Group of answer choices

1.23

1.06

1.03

0.73