The management of Tony Corporation is considering the purchase of a new machine costing $400,000. No residual value is expected. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information the following data is available. Year 1 2 Income from Operations $100,000 40,000 20,000 10,000 10,000 Net Cash Flow $180,000 120,000 100,000 90,000 90,000 3 4 3 The profitability index for this investment is: O 1.14 O 70 respectively. In addition to the foregoing information the following data is available. Year 1 2 Income from Operations $100,000 40,000 20,000 10,000 10,000 Net Cash Flow $180,000 120,000 100,000 90,000 90,000 3 4 5 The profitability index for this investment is: O 1.14 0.70 O 1.45 0.88