Assume that a company is considering purchasing a machine for $$50,500$ that will have a five$-$year useful life ar no salvage value. The machine will lower operating costs by $$17,000$ per year. The company's required rate of return is $18\%.$ The profitability index for this investment is closest to:

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using the table provided.

Multiple Choice

$0\mathrm{.}95$

$1\mathrm{.}01$

$1\mathrm{.}05$

$1\mathrm{.}11$