Question
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.74 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 $1.74 million and create incremental cash flows of $603,484.00 each year for the next five years. The cost of capital is 8.59%. What is the profitability index for the J-Mix 2000?
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Continuous Time Finance
Authors: Robert C. Merton
1st Edition
0631185089, 978-0631185086
