Question
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.16 million and
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.16 million and create incremental cash flows of $546,568.00 each year for the next five years. The cost of capital is 10.30%. What is the net present value of the J-Mix 2000?
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.71 million and create incremental cash flows of $443,238.00 each year for the next five years. The cost of capital is 11.68%. What is the internal rate of return for the J-Mix 2000?
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.63 million and create incremental cash flows of $528,402.00 each year for the next five years. The cost of capital is 9.77%. What is the profitability index for the J-Mix 2000?
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