Question 39 of 43 View Policies Current Attempt in Progress Period 8% 6

Current Attempt in Progress Blue Spruce, Inc is considering purchasing equipment costing $84000 with a 6 -year useful life. The equipment will provide annual cost savings of $22600 and will be depreciated straight-line over its useful life with no salvage value. Blue Spruce requires a 10% rate of return. What is the approximate profitability index associated with this equipment? 1.14 1.31 1.17 0.73