w wum od CsePub - Elect. #34 o 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 Pjxs will cost $1.64 million fully installed and has a 10 year life. It will be depreciated to a book value of $124,531.00 and sold for that amount in year 10. b. The Engineering Department spent $45,398.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,532.00 d. The PjX5 will reduce operating costs by $360,783.00 per year. e. CSD's marginal tax rate is 32.00%. 1. CSD is 71.00% equity-financed. 9. CSD's 11.00-year, semi-anual pay, 5.77% coupon bond sells for $967.00. h. CSD's stock currently has a market value of $22.72 and Mr. Benson believes the market estimates that dividends will grow at 3.13% forever. Next year's dividend is projected to be $1.77. Submit Answer format: Currency: Round to: 2 decimal places. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to dunha dit didakwa Trading Points: 34.6/40 Grade: 86.5 % Progress: 87.5 % Time Remaining: 39:57 Hide tv W P MacBook Pro + & w wum od CsePub - Elect. #34 o 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 Pjxs will cost $1.64 million fully installed and has a 10 year life. It will be depreciated to a book value of $124,531.00 and sold for that amount in year 10. b. The Engineering Department spent $45,398.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,532.00 d. The PjX5 will reduce operating costs by $360,783.00 per year. e. CSD's marginal tax rate is 32.00%. 1. CSD is 71.00% equity-financed. 9. CSD's 11.00-year, semi-anual pay, 5.77% coupon bond sells for $967.00. h. CSD's stock currently has a market value of $22.72 and Mr. Benson believes the market estimates that dividends will grow at 3.13% forever. Next year's dividend is projected to be $1.77. Submit Answer format: Currency: Round to: 2 decimal places. Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to dunha dit didakwa Trading Points: 34.6/40 Grade: 86.5 % Progress: 87.5 % Time Remaining: 39:57 Hide tv W P MacBook Pro + &
