Unanswered Answered Caspian Sea Drinks is considering the purchase of a plum juicer - the...
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Unanswered Answered 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 IRR of the PJX5? a The PJX5 will cost $1.72 million fully installed and has a 10 year life. It will be depreciated to a book value of $216.078.00 and sold for that amount in year 10 b. The Engineering Department spent $48,014.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,308 00 d. The PJX5 will reduce operating costs by $420,799.00 per year. e CSD's marginal tax rate is 36.00% 1. CSD is 69.00% equity-financed. 9 CSD's 16.00-year semi-annual pay 5.27% coupon bond sells for $995 00 h CSO's stock currently has a market value of $24.75 and Mr Bensen believes the market estimates that dividends will grow at 2.96% forever. Next year's dividend is projected to be 51.47 Answer format: Percentage Round to 2 decimal places Example 9 2495 rounded to 4 decimal places (ex 00920) reduced we accept de malformat Caspian Sea Onnks is considering the production of a
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