Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.49 million and create incremental cash flows of $575,352.00 each year for the next five years. The cost of capital is 10.05%. 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 more product. The machine cost $1.49 million and create incremental cash flows of $575,352.00 each year for the next five years. The cost of capital is 10.05%. What is the net present value of the J-Mix 2000? Submit Answer format: Currency: Round to: 2 decimal places.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter26: Real Options

Section: Chapter Questions

Problem 9SP

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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 $1.90 million and create incremental cash flows of $882,125.00 each year for the next five years. The cost of capital is 10.56%. What is the net present value of the J-Mix 2000? 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 more product. The machine cost $1.71 million and create incremental cash flows of $603,749.00 each year for the next five years. The cost of capital is 8.77%. What is the profitability index for the J-Mix 2000? Submit Answer format: Number: Round to: 3 decimal places.
# 32 Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.77 million and create incremental cash flows of $483,486.00 each year for the next five years. The cost of capital is 8.44%. What is the internal rate of return for the J-Mix 2000? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted Attempts Remaining: Infinity
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