Question
PLEASE ANSWER ONLY IF YOU KNOW HOW TO DO THIS. THANKS SO MUCH WILL THUMBS UP! 1. A. Caspian Sea Drinks is considering buying the
PLEASE ANSWER ONLY IF YOU KNOW HOW TO DO THIS. THANKS SO MUCH WILL THUMBS UP!
1.
A. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.94 million and create incremental cash flows of $589,739.00 each year for the next five years. The cost of capital is 9.55%. What is the net present value of the J-Mix 2000?
B. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.81 million and create incremental cash flows of $540,376.00 each year for the next five years. The cost of capital is 11.80%. What is the internal rate of return for the J-Mix 2000?
C. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.62 million and create incremental cash flows of $603,618.00 each year for the next five years. The cost of capital is 8.15%. What is the profitability index for the J-Mix 2000?
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