Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. casplan sea drinks is considering the purchase of

Casplan Sea Drinks is considering the purchase of a plum juicer - the PJX5. There...

70.2K

Verified Solution

Question

Accounting

image
Casplan 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 IRR of the PJX5? a. The PJX5 will cost $2.47 million fully installed and has a 10 year iffe. It will be depreciated to a book value of $121,392.00 and sold for that amount in year 10. b The Engineering Department spent $11,139.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,070.00. d. The PJX5 will reduce operating costs by $311,18800 per year e. CSD's marginal tax rate is 38.00% f CSD is 68.00% equity-financed. 9 CSD's 10.00-year, semkannual pay, 5.78% coupon bond sells for $1,049.00 h. CSD's stock currently has a market value of $21.05 and Mr. Bensen believes the market estimates that dividends will grow at 3.44% forever. Next year's dividend is projected to be $1.79 Answer format: Percentage Round to: 2 decimal places (Example: 9.24% \% sign required. Wul accept decimal format rounded to 4 decimal places (ex 0.0924))

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Calculate the Y values corresponding to the X values given below.  Find the critical values for X for...

Finance
1.2K views

The nominal yield on 6-month T-bills is 7%, while default-free Japanese bonds that mature in 6...

Biology
1.2K views

Record 5 data points for the Oxygen Percent Concentration time period Record your oxygen concentration...

Basic Math
1.2K views

Consider the 3D vectors u=4i - 2j+ k and v=3i + 6j.a. Find a unit...

Calculus
1.2K views

Estimate the limit numerically if it exists If an answer does not exist enter DNE...

Algebra
1.2K views

7 The batting order for nine players on a 12 person team 9 A group...

Accounting
1.2K views

The actual information pertains to the month of June....

Accounting
1.2K views

Requerents 1. Precont the ahang entry tegised...

Accounting
1.2K views

Balance Sheet: 1. Based on your horizontal analysis of Choice Hotels'...

Accounting
1.2K views

This is a 5 page case study. If anyone can help me Required 1....

Accounting
1.2K views

ITFO Case Study (30%)

Finance
1.2K views

Define direct and indirect instruments used by central bank to implement the monetary policy? need...