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unanswered not_submitted Attempts Remaining: Infinity Caspian Sea Drinks is considering the purchase of a plum juicer the PJX5. There is no planned increase in production.

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unanswered not_submitted Attempts Remaining: Infinity 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 $2.18 million fully installed and has a 10 year life. It will be depreciated to a book value of $215,560.00 and sold for that amount in year 10. b. The Engineering Department spent $41,752.00 researching the various juicers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,044.00. d. The PJX5 will reduce operating costs by $474,579.00 per year. e. CSD's marginal tax rate is 20.00%. f. CSD is 62.00% equity-financed. g. CSD's 10.00-year, semi-annual pay, 6.91% coupon bond sells for $1,030.00. h. CSD's stock currently has a market value of $20.40 and Mr. Bensen believes the market estimates that dividends will grow at 3.71% forever. Next year's dividend is projected to be $1.73. Submit Answer format: Currency: Round to: 2 decimal places #2 unanswered 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 $2.20 million fully installed and has a 10 year life. It will be depreciated to a book value of $113,985.00 and sold for that amount in year 10. not submitted Attempts Remaining: Infinity b. The Engineering Department spent $32,533.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,514.00. d. The PJX5 will reduce operating costs by $422,793.00 per year. e. CSD's marginal tax rate is 27.00%. f. CSD is 71.00% equity-financed. g. CSD's 15.00-year, semi-annual pay, 6.64% coupon bond sells for $1,027.00. h. CSD's stock currently has a market value of $21.45 and Mr. Bensen believes the market estimates that dividends will grow at 3.53% forever. Next year's dividend is projected to be $1.51. Submit

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