Question: PLEASE ROUND TO 2 DECIMAL PLACES AND PLEASE ANSWER ALL 3 QUESTIONS. 1) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow

PLEASE ROUND TO 2 DECIMAL PLACES AND PLEASE ANSWER ALL 3 QUESTIONS.

1) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.32 million and create incremental cash flows of $790,716.00 each year for the next five years. The cost of capital is 10.42%. What is the net present value of the J-Mix 2000?

2) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.96 million and create incremental cash flows of $582,193.00 each year for the next five years. The cost of capital is 8.61%. What is the internal rate of return for the J-Mix 2000?

3) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.80 million and create incremental cash flows of $585,145.00 each year for the next five years. The cost of capital is 11.73%. What is the profitability index for the J-Mix 2000?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

#40 The risk-free rate is 3.81% and the market risk premium is 9.60%. A stock with a of 1.30 just paid a dividend of $1.06. The dividend is expected to grow at 20.11% for three years and then grow at...

pls answer all three and for #31 make sure answer is 3 decimal place :) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost...

i i need help with these questions please. #1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.46 million and create...

Really need help with these questions please and thank you! 1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost 51.89 million...

pls help A stock Just paid a dividend of $1.26. The dividend is expected to grow at 26.69% for three years and then grow at 4.30% thereafter. The reculied return on the stock is 13.05%. What is the...

#1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.82 million and create incremental cash flows of $825,019.00 each year...

plz answer 2-5 answer for #1 not needed #1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.68 million and create...

1.) Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.01 million and create incremental cash flows of $642,508.00 each...

#1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.68 million and create incremental cash flows of $646,838.00 each year...

please answer all! #1 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.83 million and create incremental cash flows of...

Journalize the following transaction in correct form: 201X Mar. 20 The business returned to the vendor a damaged inventory item that cost $420.

Company A information is as follows: Average shareholder equity 160 million baht The net profit of the company is 20 million baht. The company pays dividends. according to the dividend payment policy...

Exercise 2 ( 2 5 points ) : There are three different kinds of bond that are traded in a market: 1 . Bond A is worth 5 0 0 dollars today, and it will pay a coupon of 1 0 0 dollars in three and in six...

Stefani German, a 40-year-old woman, plans to retire at age 65, and she wants to accumulate $430,000over the next 25 years to supplement the retirement programs that are being funded by the federal...