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 $1.91 million fully installed and has a 10 year life. It will be depreciated to a book value of $150,589.00 and sold for that amount in year 10.
b. The Engineering Department spent $12,042.00 researching the various juicers.
c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,783.00.
d. The PJX5 will reduce operating costs by $393,208.00 per year.
e. CSD’s marginal tax rate is 21.00%.
f. CSD is 69.00% equity-financed.
g. CSD’s 16.00-year, semi-annual pay, 6.12% coupon bond sells for $978.00.
h. CSD’s stock currently has a market value of $24.51 and Mr. Bensen believes the market estimates that dividends will grow at 3.87% forever. Next year’s dividend is projected to be $1.61.
Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is...
p24.) 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 $2.30 million fully installed and has a 10 year life. It will be depreciated to a book value of...
1. 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 $1.63 million fully installed and has a 10 year life. It will be depreciated to a book value of...
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 $2.42 million fully installed and has a 10 year life. It will be depreciated to a book value of $260,148.00...
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 $1.82 million fully installed and has a 10 year life. It will be depreciated to a book value of $103,248.00...
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 $1.70 million fully installed and has a 10 year life. It will be depreciated to a book value of $298,764.00...
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 $1.71 million fully installed and has a 10 year life. It will be depreciated to a book value of $285,571.00...
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 $1.53 million fully installed and has a 10 year life. It will be depreciated to a book value of $206,022.00...
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 $1.54 million fully installed and has a 10 year life. It will be depreciated to a book value of $146,595.00...
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 $2.29 million fully installed and has a 10 year life. It will be depreciated to a book value of $129,164.00...
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 PJXS? a. The PJX5 will cost $1.66 million fully installed and has a 10 year life. It will be depreciated to a book value of $250,198.00...