XYZ company is considering to acquire a machine in order to reduce its direct labor costs. This machine shall last for 4 years with no salvage value. Currently, the cash expenses amounted to $120,000 per year. The initial analysis indicated that the time-adjusted rate of return is 15%. At 12% (cost of capital to finance the purchase of the machine), the company expects net present value of $5,470.80. The present value of 1 for four period at 12% is 3.03735 and at 15% is 2.85499. Ignoring income tax considerations, the profitability index is