30 #3

Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.64 million and create incremental cash flows of $645,981.00 each year for the next five years. The cost of capital is 10.21%. What is the profitability index for the J-Mix 2000?

Answer format:Number: Round to: 3 decimal places.