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

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Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $

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Answer 1

Answer #1

Let irr be x%
At irr,present value of inflows=present value of outflows.

1,800,000=438206/1.0x+438206/1.0x^2+438206/1.0x^3+438206/1.0x^4+438206/1.0x^5

Hence x=irr=6.93%(Approx).

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Answer 2

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