Cleaners, Inc $\quad$ $\quad$ $\quad$ $\quad$ $\quad$

Cleaners, Inc.is considering purchasing equipment costing $30,000 with a 6-year useful life.The equipment will provide cost savings of $7,300 and will be amortized using the straight-line method over its useful life with no salvage value.Cleaners, Inc.requires a 10% rate of return.What is the approximate profitability index associated with this equipment? $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Present Value of an Annuity of } 1$$\begin{array}{llcc}\underline{\text { Period }} &\underline{8 \%}&\underline{9 \%} & \underline{10 \%}&\underline{11 \%} &\underline{12 \%}& \underline{15 \%}\\6&4.623&4.486&4.355&4.231&4.111&3.784\end{array}$

A) 1.23
B) 1.03
C) 1.06
D) 73