Question
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.05 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 $1.05 million and create incremental cash flows of $754,144.00 each year for the next five years. The cost of capital is 9.64%. 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 $1.69 million and create incremental cash flows of $518,828.00 each year for the next five years. The cost of capital is 11.22%. 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 $1.77 million and create incremental cash flows of $619,323.00 each year for the next five years. The cost of capital is 10.77%. What is the profitability index for the J-Mix 2000?
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