Where necessary, use the table of present value factors. A link to download a copy of the PV factors is provided in the test instructions guidelines.

A company is considering the purchase of new equipment for $$56,000.$ The projected after$-$tax net income is $$12,150$ after deducting $$14,000$ of depreciation. The machine has a useful life of four years and no salvage value. Management of the company requires a $10\%$ return on investment.

What is the profitability index $($to the nearest second decimal place$)$ for this equipment?

None of the choices are correct.

$1\mathrm{.}21$

$0\mathrm{.}21$

$1\mathrm{.}17$

$1\mathrm{.}16$

$1\mathrm{.}15$