Question: how do I solve this with a financial calculator. step by step 151 Caspian Sea Drinks is considering the purchase of a plum juicer -
151 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX6. 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 $2.17 million fully installed and has a 10 year life. It will be depreciated to a book value of $181,258.00 and sold for that amount in year 10. b. The Engineering Department spent $28,539.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the Juicer at a cost of $15,616.00 d. The PJX5 will reduce operating costs by $325,941.00 per year e CSD's marginal tax rate is 20.00%. CSD is 69.00% equity-financed. 9 CSD's 15.00-year semi-annual pay, 5.96% coupon bond sells for $961.00 h. CSD's stock currently has a market value of $22.06 and Mr. Bensen believes the market estimates that dividends will grow at 4.46% forever Next year's dividend is projected to be $1.52. Submit Answer format: Currency. Rodnd to 2 decimal places
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