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 $

31 Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines This ne

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Answer 1

Answer #1

3.

profitability index

=present value of future cash flows/initial investment

=((648300*((1-(1+10.96%)^(-5))/10.96%))/(1.52*1000000))

=1.58

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Answer 2

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