Question: Please Highlight or Bold Answer for Both Questions. Please Answer Both I Dont Have Many Posts Left. Thanks !! #1 + unanswered not_submitted Attempts Remaining:

Please Highlight or Bold Answer for Both Questions. Please Answer Both IDont Have Many Posts Left. Thanks !! #1 + unanswered not_submitted AttemptsPlease Highlight or Bold Answer for Both Questions. Please Answer Both I Dont Have Many Posts Left. Thanks !!

#1 + 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 PJX5 will cost $2.12 million fully installed and has a 10 year life. It will be depreciated to a book value of $247,274.00 and sold for that amount in year 10 b. The Engineering Department spent $49,279.00 researching the various juicers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,053.00. d. The PJX5 will reduce operating costs by $399,870.00 per year. e. CSD's marginal tax rate is 38.00%. f. CSD is 68.00% equity-financed g. CSD's 14.00-year, semi-annual pay, 5.58% coupon bond sells for $980.00. h. CSD's stock currently has a market value of $20.00 and Mr. Bensen believes the market estimates that dividends will grow at 3.28% forever. Next year's dividend is projected to be $1.63. Submit Answer format: Currency: Round to: 2 decimal places. #3 + unanswered not_submitted Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $25.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10. Net working capital will increase by $1.42 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.30 million per year and cost $2.21 million per year over the 10-year life of the project. Marketing estimates 10.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 20.00%. The WACC is 13.00%. Find the NPV (net present value). Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places

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