principles of finance

The management of Brunus Corporation is considering the purchase of a new machine costing $375.000. The company expects to use this machine for 5 years. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. Income from operations for each of the five years is 518.750. In addition, the net cash flows for each of the five years is 593.750. What would be the profitability index for this investment? a. 1.00 b. 0.95 c. 125 d. 1.05