USE THE FOLLOWING INFORMATION FOR QUESTIONS 4-8 Happy Company is considering the purchase of a new machine that would cost $120,000. The machine would have a useful life of 6 years. Happy Company plans on using straight-line depreciation with an estimated salvage value of $0. Happy Company has a hurdle rate of 8% and is subject to an income tax rate of 60%. The annual cash income is estimated to be $40,000. PV TABLES CAN BE FOUND ON PAGE 13. 6. The Profitability Index (PI) is: A. 1.08 B. 1.05 C. 1.11 D. 1.01 E. 1.15