Question
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.18 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 $1.18 million and create incremental cash flows of $820,227.00 each year for the next five years. The cost of capital is 11.69%. What is the net present value of the J-Mix 2000?
Answer format: Currency: Round to: 2 decimal places.
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.96 million and create incremental cash flows of $500,207.00 each year for the next five years. The cost of capital is 9.34%. What is the internal rate of return for the J-Mix 2000?
Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.98 million and create incremental cash flows of $640,301.00 each year for the next five years. The cost of capital is 9.10%. What is the profitability index for the J-Mix 2000?
Answer format: Number: Round to: 3 decimal places.
I would really appreciate the Help!! :) would be great if you could show the steps (not on excel) for better understanding! Thank You~
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started