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A. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make...

A. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.57 million and create incremental cash flows of $599,979.00 each year for the next five years. The cost of capital is 8.18%. 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 $1.66 million and create incremental cash flows of $532,580.00 each year for the next five years. The cost of capital is 11.13%. 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 $1.90 million and create incremental cash flows of $642,799.00 each year for the next five years. The cost of capital is 11.97%. What is the profitability index for the J-Mix 2000?

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jeff jeffy answered 1 year ago
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