Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.80 million and create incremental cash flows of $552,966.00 each year for the next five years. The cost of capital is 9.20%. What is the internal rate of return for 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 $1.87 million and create incremental cash flows of $556,220.00 each year for the next five years. The cost of capital is 11.37%. What is the profitability index for the J-Mix 2000?
1.
using equation
(-1.80*1000000)+552966/(1+r)^1+552966/(1+r)^2+552966/(1+r)^3+552966/(1+r)^4+552966/(1+r)^5=0
use hit and trial method to get r
after trying many times, we get r=16.25% is internal rate of return
2.
the profitability index
=present value of future cash flows/initial investments
=(552966/(1+11.37%)^1+552966/(1+11.37%)^2+552966/(1+11.37%)^3+552966/(1+11.37%)^4+552966/(1+11.37%)^5)/(1.80*1000000)
=1.12
the above will be answers..
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and...
A. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.21 million and create incremental cash flows of $632,691.00 each year for the next five years. The cost of capital is 9.92%. 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 $1.80 million...
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.89 million and create incremental cash flows of $832,258.00 each year for the next five years. The cost of capital is 9.20%. What is the net present value of the J-Mix 2000? unanswered not submitted Submit Attempts Remaining: 5 Answer format: Currency: Round to: 2 decimal places. Caspian Sea Drinks is considering buying the J-Mix 2000. It will...
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.80 million and create incremental cash flows of $552,306.00 each year for the next five years. The cost of capital is 11.74%. What is the net present value of the J-Mix 2000? Submit Answer format: Currency: Round to: 2 decimal places, Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell...
b. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.63 million and create incremental cash flows of $594,237.00 each year for the next five years. The cost of capital is 8.76%. What is the internal rate of return for the J-Mix 2000? Round to: 2 decimal places c. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more...
Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.97 million and create incremental cash flows of $504,235.00 each year for the next five years. The cost of capital is 8.73%. What is the profitability index for 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 $1.56 million and create incremental cash flows of $649,261.00 each year for the next five years. The cost of capital is 9.75%. What is the profitability index for 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 $1.93 million and create incremental cash flows of $537,571.00 each year for the next five years. The cost of capital is 11.64%. What is the profitability index for 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 $1.65 million and create incremental cash flows of $629,850.00 each year for the next five years. The cost of capital is 9.03%. What is the profitability index for 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 $2.00 million and create incremental cash flows of $554,522.00 each year for the next five years. The cost of capital is 9.95%. What is the internal rate of return for 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 $1.91 million and create incremental cash flows of $832,145.00 each year for the next five years. The cost of capital is 9.61%. What is the net present value of the J-Mix 2000?