What is the net present value of J-Mix 2000

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Reference no: EM133146600

1. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.67 million and create incremental cash flows of $831,367.00 each year for the next five years. The cost of capital is 10.85%. 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 $1.64 million and create incremental cash flows of $441,544.00 each year for the next five years. The cost of capital is 8.18%. 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 $1.74 million and create incremental cash flows of $566,503.00 each year for the next five years. The cost of capital is 10.55%. What is the profitability index for the J-Mix 2000?

Reference no: EM133146600

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