What is the project profitability index

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Kevin is considering building a new studio to record his podcast. The studio costs $300,000 to build, but the higher quality will attract more downloads and subscriptions. If the new studio generates $80,000 per year in incremental cash flows for the next 5 years, what is the project's profitability index? Assume that the discount rate is 5 percent.

Reference no: EM131317144

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