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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

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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 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 $1.67 million fully installed and has a 10 year life. It will be depreciated to a book value of $131,000.00 and sold for that amount in year 10. b. The Engineering Department spent $30,458.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,034.00. d. The PJX5 will reduce operating costs by $416,632.00 per year. e. CSD's marginal tax rate is 20.00%. f. CSD is 70.00% equity-financed. g. CSD's 18.00-year, semi-annual pay, 6.34% coupon bond sells for $1,028.00. h. CSD's stock currently has a market value of $23.88 and Mr. Bensen believes the market estimates that dividends will grow at 2.12% forever. Next year's dividend is projected to be $1.42. Submit Answer format: Currency: Round to: 2 decimal places. 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 $1.81 million fully installed and has a 10 year life. It will be depreciated to a book value of $220,889.00 and sold for that amount in year 10. b. The Engineering Department spent $11,552.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,898.00. d. The PJX5 will reduce operating costs by $416,849.00 per year. e. CSD's marginal tax rate is 37.00%. f. CSD is 59.00% equity-financed. g. CSD's 15.00-year, semi-annual pay, 6.26% coupon bond sells for $988.00. h. CSD's stock currently has a market value of $24.53 and Mr. Bensen believes the market estimates that dividends will grow at 2.79% forever. Next year's dividend is projected to be $1.54. 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)) 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 $1.67 million fully installed and has a 10 year life. It will be depreciated to a book value of $131,000.00 and sold for that amount in year 10. b. The Engineering Department spent $30,458.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,034.00. d. The PJX5 will reduce operating costs by $416,632.00 per year. e. CSD's marginal tax rate is 20.00%. f. CSD is 70.00% equity-financed. g. CSD's 18.00-year, semi-annual pay, 6.34% coupon bond sells for $1,028.00. h. CSD's stock currently has a market value of $23.88 and Mr. Bensen believes the market estimates that dividends will grow at 2.12% forever. Next year's dividend is projected to be $1.42. Submit Answer format: Currency: Round to: 2 decimal places. 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 $1.81 million fully installed and has a 10 year life. It will be depreciated to a book value of $220,889.00 and sold for that amount in year 10. b. The Engineering Department spent $11,552.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,898.00. d. The PJX5 will reduce operating costs by $416,849.00 per year. e. CSD's marginal tax rate is 37.00%. f. CSD is 59.00% equity-financed. g. CSD's 15.00-year, semi-annual pay, 6.26% coupon bond sells for $988.00. h. CSD's stock currently has a market value of $24.53 and Mr. Bensen believes the market estimates that dividends will grow at 2.79% forever. Next year's dividend is projected to be $1.54. 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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