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

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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. Mr. Bensen gave Derak the following information. What is the NPV of the PJX5? a. The PJX5 will cost $2.05 million fully installed and has a 10 year life. It will be depreciated to a book value of $282,499.00 and sold for that amount in year 10. b. The Engineering Department spent $20,091,00 researching the various juicers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,168.00. d. The PjX5 will reduce operating costs by $470,841.00 per year. e. CSD's marginal tax rate is 31.00%. f. CSD is 68.00% equity-financed. 9. CSD's 17.00-year, semi-annual pay, 6.64% coupon bond sets for $995.00. h. CSD's stock currently has a market value of $21.63 and Mr. Bensen believes the market estimates that dividends will grow at 2.89% forever. Next year's dividend is projected to be $1.62. Submit Answer format: Currency: Round to: 2 decimal places. N2 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 PJX5? a. The PJX5 will cost $1.76 million fully installed and has a 10 year life. It will be depreciated to a book value of $122,628.00 and sold for that amount in year 10. b. The Engineering Department spent $25,183.00 researching the various juicers c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,438.00 d. The PJX5 will reduce operating costs by $480,783.00 per year. e. CSD's marginal tax rate is 29.00%. 1. CSD is 68.00% equity-financed. 9. CSD's 13.00-year, semi-annual pay, 5.05% coupon bond sells for $960.00 h. CSD's stock currently has a market value of $24.36 and Mr. Banson believes the market estimates that dividends will grow at 3.54% forever. Next year's dividend is projected to be $1.55 Submit Answer format: Parcentage Round to: 2 decimal places (Example: 9.24%, sign required. Will accept decimal format rang2

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