Question
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.88 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 $1.88 million and create incremental cash flows of $437,172.00 each year for the next five years. The cost of capital is 8.67%. 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 $1.54 million and create incremental cash flows of $561,864.00 each year for the next five years. The cost of capital is 8.48%. What is the profitability index for the J-Mix 2000?
Answer format: Number: Round to: 3 decimal places.
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