Tamim Products is planning to invest in an equipment to implement a cost$-$cutting proposal. The pre$-$tax cost

reduction is expected to equal $$8,500$ for each of the five years of the project's life. The equipment has an

initial cost of $$28,000$ and belongs to a $25\%$ CCA class. The company is in $30\%$ tax bracket, the project's

discount rate is $12\%,$ and its salvage value is zero. The equipment will be sold to another company at the end

of year $5$ for $$4,500.$ What is the project's profitability index $($PI$)?($Use the half$-$year rule when calculating the

CCA Tax Shield. I.E use $0\mathrm{.}5$ instead of $$\mathrm{.}5)$

a$.0\mathrm{.}81$

b$.0\mathrm{.}84$

c$.0\mathrm{.}92$

d$.0\mathrm{.}98$

e$.1\mathrm{.}03$