Question
I need help immediately please, before 10 pm tonight. Caspian Sea Drinks is considering the purchase of a plum juicer the PJX5. There is no
I need help immediately please, before 10 pm tonight.
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 $2.48 million fully installed and has a 10 year life. It will be depreciated to a book value of $210,103.00 and sold for that amount in year 10. b. The Engineering Department spent $12,655.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,936.00. d. The PJX5 will reduce operating costs by $450,836.00 per year. e. CSDs marginal tax rate is 23.00%. f. CSD is 65.00% equity-financed. g. CSDs 11.00-year, semi-annual pay, 5.31% coupon bond sells for $971.00. h. CSDs stock currently has a market value of $23.74 and Mr. Bensen believes the market estimates that dividends will grow at 4.14% forever. Next years dividend is projected to be $1.80.
Submit- Answer format: Currency: Round to: 2 decimal places.
Please show all steps in a simple format to enter into financial calculator. I am a beginner. Thanks.
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