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 NPV of the PJX5 a The PJX5 will cost $2 27 million fully installed and has a 10 year life It will be depreciated to a book value of $116,480 00 and sold for that amount in year 10 b The Engineering Department spent $13,334 00 researching the various juicers c Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,965 00 d The PJX5 will reduce operating costs by $444,240 00 per year e CSDs marginal tax rate is 32 00 f CSD is 55 00 equity financed g CSDs 10 00 year, semi annual pay, 6 72 coupon bond sells for $960 00 h CSDs stock currently has a market value of $21 22 and Mr Bensen believes the market estimates that dividends will grow at 2 86 forever Next years dividend is projected to be $1 48 Submit Answer format Currency Round to 2 decimal places unanswered not submitted Attempts Remaining Infinity 2 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 79 million fully installed and has a 10 year life It will be depreciated to a book value of $246,448 00 and sold for that amount in year 10 b The Engineering Department spent $48,925 00 researching the various juicers c Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,910 00 d The PJX5 will reduce operating costs by $348,205 00 per year e CSDs marginal tax rate is 33 00 f CSD is 65 00 equity financed g CSDs 13 00 year, semi annual pay, 6 57 coupon bond sells for $955 00 h CSDs stock currently has a market value of $22 72 and Mr Bensen believes the market estimates that dividends will grow at 3 15 forever Next years dividend is projected to be $1 58 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))

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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

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 NPV of the PJX5?

a. The PJX5 will cost $2.27 million fully installed and has a 10 year life. It will be depreciated to a book value of $116,480.00 and sold for that amount in year 10.

b. The Engineering Department spent $13,334.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,965.00.

d. The PJX5 will reduce operating costs by $444,240.00 per year.

e. CSDs marginal tax rate is 32.00%.

f. CSD is 55.00% equity-financed.

g. CSDs 10.00-year, semi-annual pay, 6.72% coupon bond sells for $960.00.

h. CSDs stock currently has a market value of $21.22 and Mr. Bensen believes the market estimates that dividends will grow at 2.86% forever. Next years dividend is projected to be $1.48.

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a. The PJX5 will cost $1.79 million fully installed and has a 10 year life. It will be depreciated to a book value of $246,448.00 and sold for that amount in year 10.

b. The Engineering Department spent $48,925.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,910.00.

d. The PJX5 will reduce operating costs by $348,205.00 per year.

e. CSDs marginal tax rate is 33.00%.

f. CSD is 65.00% equity-financed.

g. CSDs 13.00-year, semi-annual pay, 6.57% coupon bond sells for $955.00.

h. CSDs stock currently has a market value of $22.72 and Mr. Bensen believes the market estimates that dividends will grow at 3.15% forever. Next years dividend is projected to be $1.58.

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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))