Question
21. 3.Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.52 million
21.
3.Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.52 million and create incremental cash flows of $537,546.00 each year for the next five years. The cost of capital is 10.74%. What is the profitability index for the J-Mix 2000?
5.Derek decides to buy a new car. The dealership offers him a choice of paying $600.00 per month for 5 years (with the first payment due next month) or paying some $28,855.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?
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