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 four 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 $4$ for

$$4,500.$ What is the project's profitability index $($PI$)?$

Multiple Choice

$0\mathrm{.}81$

$1\mathrm{.}13$

$0\mathrm{.}84$

$0\mathrm{.}94$

$0\mathrm{.}90$