Question: please highlight the exact answer 2 o ALE or your Caspian Sea Drinks is considering the purchase of a plum julcer - the PJX5. There
2 o ALE or your Caspian Sea Drinks is considering the purchase of a plum julcer - the PJX5. There is no planned Increase in production The PJXs 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 IRR of the PJX5? a. The PJX5 will cost $2.07 million fully installed and has a 10 year life. It will be depreciated to a book value of $217,442.00 and sold for that amount in year 10. b. The Engineering Department spent $14,599.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,145.00 a. The PJXs will reduce operating costs by $339,553.00 per y CSD's marginal tax rate is 29.00% 1. CSD is 68.00% equity-financed. 9. CSD'S 19.00-year, semi-annual pay, 5.08% coupon bond sells for $973.00 hCSD's stock currently has a market value of $23.79 and Mr. Bensen believes the market estimates that dividends will grow at 3.30% forever. Next year's dividend is projected to be $1.60 Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)
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