In: Finance
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.33 million and create incremental cash flows of $861,681.00 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?
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.86 million and create incremental cash flows of $571,580.00 each year for the next five years. The cost of capital is 9.90%. What is the internal rate of return for the J-Mix 2000?
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.79 million and create incremental cash flows of $641,169.00 each year for the next five years. The cost of capital is 11.73%. What is the profitability index for the J-Mix 2000?