Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

finance/ NPV/Internal Rate/ Profibility Index. will thumbs up, need all answered Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to

finance/ NPV/Internal Rate/ Profibility Index.
will thumbs up, need all answered
image text in transcribed
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.12 million and create incremental cash flows of $745,185.00 each year for the next five years. The cost of capital is 9.37%. 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 $1.60 million and create incremental cash flows of $502,947.00 each year for the next five years. The cost of capital is 11.07%. 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 $1.71 million and create incremental cash flows of $569,567.00 each year for the next five years. The cost of capital is 9.31%. What is the profitability index for the J-Mix 2000 ? Answer format: Number: Round to: 3 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Literacy For Managers

Authors: Richard A. Lambert

1st Edition

1613630182, 978-1613630181

More Books

Students also viewed these Finance questions

Question

How would you describe the work atmosphere?

Answered: 1 week ago