Question: Cheyenne Co. is considering purchasing equipment that has an initial investment of $45000. The company's required rate of return is 12%. Annual cost savings are

Cheyenne Co. is considering purchasing equipment that has an initial investment of $45000. The company's required rate of return is 12\%. Annual cost savings are projected to be $18000 for year 1,$14000 for year 2 , and $13000 for year 3 . What is the investment's profitability index? 0.81. 1.81. 1.77. 1.75

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