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1.)

Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.33 million and create incremental cash flows of $765,274.00 each year for the next five years. The cost of capital is 10.16%. What is the net present value of the J-Mix 2000?

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2.)

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 $498,334.00 each year for the next five years. The cost of capital is 10.28%. 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 $1.57 million and create incremental cash flows of $517,691.00 each year for the next five years. The cost of capital is 9.71%. What is the profitability index for the J-Mix 2000?

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