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39 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX6. There is no planned increase in production The PJX5 will

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39 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX6. There is no planned increase in production The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Me Bensen gave Derek the following information. What is the IRR of the PJX57 a. The PJX5 will cost $2.24 million fully installed and has a 10 year life. It will be depreciated to a book value of $240,094.00 and sold for that amount in year 10 b. The Engineering Department spent $36,137.00 researching the various Julcers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,810.00. d. The PjX5 will reduce operating costs by $404,124.00 per year, e. CSD's marginal tax rate is 21.00%. f. CSD is 74.00% equity-financed. 9. CSD's 11.00-year, semi-annual pay, 6.82% coupon bond sells for $962.00. h. CSD's stock currently has a market value of $21.69 and Mr. Bensen believes the market estimates that dividends will grow at 2.53% forever. Next year's dividend is projected to be $1.66. 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)) Points: 3 / 40 Grade: 7.5 % Progress: 7.5 % Time Remaining: 141:12 Hide arch O DELL Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJXS? a. The PJX5 will cost $2.24 million fully installed and has a 10 year life. It will be depreciated to a book value of $240,094.00 and sold for that amount in year 10. b. The Engineering Department spent $36,137.00 researching the various julcers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,810.00 d. The PJX5 will reduce operating costs by $404,124.00 per year. e. CSD's marginal tax rate is 21.00%. f. CSD is 74.00% equity-financed. 9. CSD's 11.00-year, semi-annual pay, 6.82% coupon bond sells for $962.00. h. CSD's stock currently has a market value of $21.69 and Mr. Bensen belleves the market estimates that dividends will grow at 2.53% forever. Next year's dividend is projected to be $1.66. 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)) Hide A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more Points: 25.5 / 40 Grade: 63.8 % Progress: 67.5% Time Remaining: 49:59 39 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX6. There is no planned increase in production The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Me Bensen gave Derek the following information. What is the IRR of the PJX57 a. The PJX5 will cost $2.24 million fully installed and has a 10 year life. It will be depreciated to a book value of $240,094.00 and sold for that amount in year 10 b. The Engineering Department spent $36,137.00 researching the various Julcers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,810.00. d. The PjX5 will reduce operating costs by $404,124.00 per year, e. CSD's marginal tax rate is 21.00%. f. CSD is 74.00% equity-financed. 9. CSD's 11.00-year, semi-annual pay, 6.82% coupon bond sells for $962.00. h. CSD's stock currently has a market value of $21.69 and Mr. Bensen believes the market estimates that dividends will grow at 2.53% forever. Next year's dividend is projected to be $1.66. 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)) Points: 3 / 40 Grade: 7.5 % Progress: 7.5 % Time Remaining: 141:12 Hide arch O DELL Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJXS? a. The PJX5 will cost $2.24 million fully installed and has a 10 year life. It will be depreciated to a book value of $240,094.00 and sold for that amount in year 10. b. The Engineering Department spent $36,137.00 researching the various julcers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,810.00 d. The PJX5 will reduce operating costs by $404,124.00 per year. e. CSD's marginal tax rate is 21.00%. f. CSD is 74.00% equity-financed. 9. CSD's 11.00-year, semi-annual pay, 6.82% coupon bond sells for $962.00. h. CSD's stock currently has a market value of $21.69 and Mr. Bensen belleves the market estimates that dividends will grow at 2.53% forever. Next year's dividend is projected to be $1.66. 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)) Hide A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more Points: 25.5 / 40 Grade: 63.8 % Progress: 67.5% Time Remaining: 49:59

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