PS30 #3

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 $605,996.00 each year for the next five years. The cost of capital is 8.60%. What is the profitability index for the J-Mix 2000?

Submit Answer format: Number: Round to: 3 decimal places.