COTB MC Qu. 14-33 (Algo) Assume the following information for a... Assume the following information for a capital budgeting proposal with a five-year time horizon: $385,000 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 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 O 1.22 O 1.17. O 1.31. 1.27