Question: please follow rounding instructions. will upvote if answer is correct. thank you for your time! Caspian Sea Drinks is considering the purchase of a plum
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 PuX5 will cost $2.40 million fully installed and has a 10 year life. It will be depreciated to a book value of $159,863.00 and sold for that amount in year 10. b. The Engineering Department spent $14,075.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,313.00. d. The PjX5 will reduce operating costs by S485,503.00 per year. e. CSD's marginal tax rate is 24.00%. 1. CSD is 56.00% equity-financed. g. CSD's 10.00-year, semi-annual pay, 6.70% coupon bond sells for $960.00 h. CSD's stock currently has a market value of $22.05 and Mr. Bensen believes the market estimates that dividends will grow at 2.98% forever. Next year's dividend is projected to be $1.71. Submit Answer format: Currency: Round to: 2 decimal places
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