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please answer correctly Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production. The
please answer correctly
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 $2.03 million fully installed and has a 10 year life. It will be depreciated to a book value of $246,950.00 and sold for that amount in year 10 . b. The Engineering Department spent $44,423.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,968.00. d. The PJX5 will reduce operating costs by $414,840.00 per year. e. CSD's marginal tax rate is 23.00%. f. CSD is 71.00% equity-financed. g. CSD's 15.00 -year, semi-annual pay, 5.61% coupon bond sells for $997.00. h. CSD's stock currently has a market value of \$22.41 and Mr. Bensen believes the market estimates that dividends will grow at 2.43% forever. Next year's dividend is projected to be $1.53. 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)) Step by Step Solution
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