Question: please answer quick for thumbs up #20 Caspian Sea Drinks is considering the purchase of a plum juicer the PJX5. There is no planned increase

please answer quick for thumbs up

please answer quick for thumbs up #20 Caspian Sea Drinks is considering

#20 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? unanswered a. The PJX5 will cost $1.69 million fully installed and has a 10 year life. It will be depreciated to a book value of $158,915.00 and sold for that amount in year 10. not_submitted Attempts Remaining: 3 b. The Engineering Department spent $17,214.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $23,089.00. d. The PJX5 will reduce operating costs by $384,168.00 per year. e. CSD's marginal tax rate is 23.00%. f. CSD is 71.00% equity-financed. g. CSD's 15.00-year, semi-annual pay, 6.39% coupon bond sells for $999.00. h. CSD's stock currently has a market value of $21.87 and Mr. Bensen believes the market estimates that dividends will grow at 2.12% forever. Next year's dividend is projected to be $1.45. Submit Answer format: Currency: Round to: 2 decimal places. #20 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? unanswered a. The PJX5 will cost $1.69 million fully installed and has a 10 year life. It will be depreciated to a book value of $158,915.00 and sold for that amount in year 10. not_submitted Attempts Remaining: 3 b. The Engineering Department spent $17,214.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $23,089.00. d. The PJX5 will reduce operating costs by $384,168.00 per year. e. CSD's marginal tax rate is 23.00%. f. CSD is 71.00% equity-financed. g. CSD's 15.00-year, semi-annual pay, 6.39% coupon bond sells for $999.00. h. CSD's stock currently has a market value of $21.87 and Mr. Bensen believes the market estimates that dividends will grow at 2.12% forever. Next year's dividend is projected to be $1.45. Submit Answer format: Currency: Round to: 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!