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?
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