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 $1.78 million and create incremental cash flows of $820,427.00 each year for the next five years. The cost of capital is 10.84%. 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 $1.61 million and create incremental cash flows of $540,694.00 each year for the next five years. The cost of capital is 10.41%. What is the internal rate of return for the J-Mix 2000?