Question
Scenario A) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.90
Scenario A) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.90 million and create incremental cash flows of $669,941.00 each year for the next five years. The cost of capital is 8.75%. What is the net present value of the J-Mix 2000? Answer format: Currency: Round to: 2 decimal places.
Scenario B) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.74 million and create incremental cash flows of $513,868.00 each year for the next five years. The cost of capital is 8.12%. What is the internal rate of return for the J-Mix 2000? Answer format: Percentage Round to: 2 decimal places.
Scenario C) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.70 million and create incremental cash flows of $593,651.00 each year for the next five years. The cost of capital is 10.27%. What is the profitability index for the J-Mix 2000? Answer format: Number: Round to: 3 decimal places.
3 Part answer I am sorry I will rate thumbs up!
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