14. Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year class life and will be depreciated by the MACRS depreciation system and it will have a positive pre-tax salvage value at the end of Year 3, when the project will be closed down. Also, some new working capital will be required, but it will be recovered at the end of the project's life. What is the project's Profitability Index? WACC 11.00% Net investment in fixed assets (depreciable basis) $70,000.00 Required new working capital $5,000.00 Sales revenues, each year for 3 years $80,000.00 Annual cash operating costs (excludes depreciation) $35,000.00 Expected pre-tax salvage value $8,000.00 Marginal tax rate 35.00%