Considering an investment in licence to market

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Reference no: EM131216838

Jupiter Ltd is considering an investment in a licence to market a new brand of yoga mats for two years. The cost of the licence is $100,000. You estimate that the licence could generate $55,000 per year of the licence. The cost of capital is estimated to be 15% per annum.

Is the project financially viable according to the Profitability Index?

Reference no: EM131216838

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