QUESTION 32 3 poin Assume that a company is considering buying a new piece of equipment for $200,000 that would have a useful life of five years and a salvage value of $30,000. The equipment would generate the following estimated annual revenues and expenses $ 120,000 Revenues Less operating expenses Commissions Insurance Depreciation Maintenance Net operating income $ 15,000 5,000 34.000 30,000 84,000 $ 35,000 Assuming a discount rate of $15%, the profitability index for this investment is closest to 1.42 1.17 1.35 O 1.25