Question
I need help immediately please, before 11:30pm. Thanks Caspian Sea Drinks is considering the purchase of a plum juicer the PJX5. There is no planned
I need help immediately please, before 11:30pm. Thanks
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 $2.18 million fully installed and has a 10 year life. It will be depreciated to a book value of $246,264.00 and sold for that amount in year 10. b. The Engineering Department spent $28,635.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,213.00. d. The PJX5 will reduce operating costs by $374,405.00 per year. e. CSDs marginal tax rate is 36.00%. f. CSD is 75.00% equity-financed. g. CSDs 19.00-year, semi-annual pay, 5.11% coupon bond sells for $1,042.00. h. CSDs stock currently has a market value of $21.26 and Mr. Bensen believes the market estimates that dividends will grow at 4.11% forever. Next years dividend is projected to be $1.42.
Please show all steps in a simple format. I am just learning.
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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