Cardinal Company is considering a project that would require a $$2,975,000$ investment in equipment with a useful life of five years. At the end of five years, the project would terminate and the equipment would be sold for its salvage value of $$300,000.$ The company$$s discount rate is $14\%.$ The project would provide net operating income each year as follows:

Sales $ $2,735,000$

Variable expenses $1,000,000$

Contribution margin $1,735,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $735,000$

Depreciation $535,000$

Total fixed expenses $1,270,000$

Net operating income $ $465,000$

Click here to view Exhibit $10-1$ and Exhibit $10-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What is the project profitability index for this project? $($Round discount factor$($s$)$ to $3$ decimal places and final answer to $2$ decimal places.$)$