Answer Happy

(The following information applies to the questions displayed below.] A company is considering a five-year project that would require a $2,810,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows: $2,847,000 1,121,000 1,726,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs Depreciation Total fixed expenses Net operating income $ 782,000 562,000 1,344,000 $ 382,000 2. What is the profitability index for this project? (Round your answer to 2 decimal places.) Profitability index