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#1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.82 million

#1

Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.82 million and create incremental cash flows of $825,019.00 each year for the next five years. The cost of capital is 11.48%. What is the net present value of the J-Mix 2000?

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Answer format: Currency: Round to: 2 decimal places.

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#2

Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.65 million and create incremental cash flows of $557,601.00 each year for the next five years. The cost of capital is 8.85%. What is the internal rate of return for the J-Mix 2000?

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Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

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#3

Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.59 million and create incremental cash flows of $544,573.00 each year for the next five years. The cost of capital is 10.96%. What is the profitability index for the J-Mix 2000?

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