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Assume the following information for a capital budgeting proposal with a five-year time horizon: ...

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Accounting

Assume the following information for a capital budgeting proposal with a five-year time horizon:
Initial investment:
Cost of equipment (zero salvage value) $ 350,000
Annual revenues and costs:
Sales revenues $ 300,000
Variable expenses $ 130,000
Depreciation expense $ 50,000
Fixed out-of-pocket costs $ 40,000
Click here to view and , to determine the appropriate discount factor(s)
using the tables provided.
Assuming a discount rate of 12%, this proposals profitability index is closest to:

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