Question
#34 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.97 million
#34
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.97 million and create incremental cash flows of $516,823.00 each year for the next five years. The cost of capital is 11.73%. What is the profitability index for the J-Mix 2000?
Answer format:Number: Round to: 3 decimal places.
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Managerial Decision Modeling With Spreadsheets
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
3rd Edition
9780136115830
