Question: Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate

Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. Gamma Electronics has a 15% cost of capital, what's the profitability index of the investment? 1.0 O 0.4 2.0 O 1.4

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