Q 16.30: McCreary Co. is considering an investment in new equipment that will produce equal annual cash flows of $40,000 for 10 years and has a net present value of $72,448. The initial investment is $190,000, the useful life is 10 years, and the equipment's salvage value after 10 years is $20,000. What is the equipment's profitability index? A 4.75 B 1.81 1.38 6.56