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#34 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in product 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 $1.90 million fully installed and has a 10 year life. It will be depreciated to a book value of $133,308.00 and sold for that amount in year 10.

b. The Engineering Department spent $34,113.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21,715.00.

d. The PJX5 will reduce operating costs by $333,399.00 per year.

e. CSD's marginal tax rate is 27.00%.

f. CSD is 58.00% equity-financed.

g. CSD's 15.00-year, semi-annual pay, 6.77% coupon bond sells for $959.00.

h. CSD's stock currently has a market value of $21.27 and Mr. Bensen believes the market estimates that dividends will grow at 2.21% forever.

Next year's dividend is projected to be $1.54. Submit Answer format: Currency: Round to: 2 decimal places.

#35 Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $24.00 million. The plant and equipment will be depreciated over 10 years to a book value of $1.00 million, and sold for that amount in year 10. Net working capital will increase by $1.07 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.42 million per year and cost $1.53 million per year over the 10-year life of the project. Marketing estimates 17.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 20.00%. The WACC is 12.00%. Find the NPV (net present value). Submit Answer format: Currency: Round to: 2 decimal places.

#36 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 $1.54 million fully installed and has a 10 year life. It will be depreciated to a book value of $143,038.00 and sold for that amount in year 10.

b. The Engineering Department spent $42,667.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,612.00.

d. The PJX5 will reduce operating costs by $438,771.00 per year.

e. CSD's marginal tax rate is 30.00%.

f. CSD is 60.00% equity-financed.

g. CSD's 18.00-year, semi-annual pay, 5.76% coupon bond sells for $975.00.

h. CSD's stock currently has a market value of $23.20 and Mr. Bensen believes the market estimates that dividends will grow at 3.82% forever.

Next year's dividend is projected to be $1.43.

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))

The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficlent manner. Mr Bensen gave Derek the following information. What is the NPV of the PJX5? a. The PJX5 will cost $1.90 milion fully installed and has a 10 year ilfe. it wil be depreclated to a book value of $133,308,00 and sold for that amount in year 10. b. The Engineering Department spent $34,113,00 researching the various fuicers. c. Portions of the plant foor have been redesigned to accommodate the julcer at a cost of $21,715.00. d. The PJX5 will reduce operating costs by $333,399,00 per year. e. CSD's marginal tax rate is 27.00%. f. CSD is 58.00% equity-tinanced. g. CSD's 15.00 -year, semi-annual pay, 6.77% coupon bond selts for $959.00. h. CSD's stock currently has a market value of $21.27 and Mr. Bensen betieves the market estimates that dividenids wil grow at 2.21% forever. Next year's dividend is profectad to be \$1. 54 Answer format: Currency: Round to: 2 decimal piaces. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet dink will cost $24,00 million. The plant and equipment will be depreciated over 10 years to a book value of $1.00 million, and sold for that amount in year 10. Net working capital will increase by $1,07milion at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.42 miltion per year and cost $1.53 million per year over the 10 -year life of the project. Marketing estimates 17.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 20.00%. The WACC is 12,00%. Find the NPV (net present value) 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 squeazing more juce from each plum and doling so in a more elficient manner, Mr. Bensen gave Derek the following information. What is the IRR of the PJX5? a. The PJX5 will cost $1.54 million fully installed and has a 10 year life. It will be deprectated to a book value of $143,038.00 and sold for that amount in year 10 . b. The Engineering Department spent $42,667.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,612.00. d. The PJX5 will reduce operating costs by $438,771.00 per vear. e. CSDs marginal tax rate is 30.00%. 1. CSD is 60.00% equity-financed. 9. CSD's 18.00-year, semi-annual pay, 5.76% coupon bond selis for $975.00. h. CSD's stock currently has a market value of $23.20 and Mc. Bensep believes the market estimates that dividends will grow at 3.82% forever, Next year's dividend is projected to be $1.43. Answer format: Percentage found to: 2 decimal places (Example: 9.24%, \% sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) )