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Urgent!!!!! pls expert on material only Caspian Sea Drinks is considering the purchase of a plum julcer - the PJX5. There is no planned increase
Urgent!!!!! pls expert on material only
Caspian Sea Drinks is considering the purchase of a plum julcer - the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more julce from each plum and doing so in a more efficlent manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJX5? a. The PJX5 will cost $2.30 million fully installed and has a 10 year llfe. It will be depreclated to a book value of $172,127.00 and sold for that amount in year 10 . b. The Engineering Department spent $24,583.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the julcer at a cost of $19,275.00. d. The PJX5 will reduce operating costs by $464,422.00 per year. e. CSD's marginal tax rate is 31.00%. f. CSD is 57.00% equity-financed. g. CSD's 13.00 -year, semi-annual pay, 5.78% coupon bond sells for $990.00. h. CSD's stock currently has a market value of \$23.62 and Mr. Bensen believes the market estimates that dividends will grow at 3.69% forever. Next year's dividend is projected to be $1.57. Caspian Ses 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 julce 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 $2.07 million fully installed and has a 10 year life. It will be depreciated to a book value of $236,971,00 and sold for that amount in year 10 . b. The Engineering Department spent $14,064.00 researching the various julcers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,812.00. d. The PJXS will reduce operating costs by $439,050.00 per year. e. CSD's marginal tax rate is 20.00%. 1. CSD is 59.00% equity-financed. g. CSD's 10.00 -year, semi-annual pay, 6.02% coupon bond sells for $979.00. h. CSD's stock currently has a market value of $24.35 and Mr. Bensen believes the market estimates that dividends will grow at 4.05% forever. Next year's dividend is projected to be $1.71 Step by Step Solution
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