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please answer both Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production The
please answer both
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. Bonson gavo Derek the following information What is the NPV of the PJX5? a The PJX5 will cost $179 million fully installed and has a 10 year life. It will be depreciated to a book value of $275,60400 and sold for that amount in year 10 b. The Engineering Department spont $34.483.00 researching the various juicers c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21,78600 d. The PJX5 will reduce operating costs by $449,633 00 per year o CSD's marginal tax rate is 2700% 1 CSD is 71.00% equity-financed g. CSD's 13.00-year semi-annual pay, 700% coupon bond sells for $1,046 00 h CSD's stock currently has a market value of $22.41 and Mr. Bensen believes the market estimates that dividonds will grow at 3.58% forever. Next year's dividend is projected to be $1 63 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 moro 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 PuX5 will cost $2.37 million fully installed and has a 10 year ifo It will be depreciated to a book value of $245,594 00 and sold for that amount in year 10 b. The Engineering Dopartment spent $10,079.00 researching the various juicers c Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,570.00 d. The Puxs will reduce operating costs by $348,049 00 per year e. CSD's marginal tax rate is 36 00% 1 CSD is 75 00% equity-financed O CSD's 17.00 year, semi-annual pay, 5 94% coupon bond sells for $1,046 00 h CSD's stock currently has a market value of $23.92 and Mr Bensen boloves the market estimates that dividends will grow at 3,52% forever Next year's dividend is projected to be $1.65 Submit Answer format: Porcentage Round to 2 decimal places (Example 9 24% % sign required Will accept decimal format rounded to 4 decimal places (ex 0 0924) Step by Step Solution
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