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 $2.48 million fully installed and has a 10 year life. It will be depreciated to a book value of $176,612.00 and sold for that amount in year 10. b. The Engineering Department spent $15,056.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21,040.00 d. The PJX5 will reduce operating costs by $489,341.00 per year e CSD's marginal tax rate is 22 00% 1. CSD is 75.00% equity-financed g CSD's 14 00-year, semi-annual pay, 6.38% coupon bond sells for $1.045.00 h. CSD's stock currently has a market value of $21.80 and Mr. Bensen believes the market estimates that dividends will grow at 4 27% forever. Next year's dividend is projected to be $1.57 Answer format: Percent Submit
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- 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 $1.97 million fully installed and has a 10 year life. It will be depreciated to a book value of $173,984.00 and sold for that amount in year 10. b. The Engineering Department spent $49,587.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,509.00. d. The PJX5 will reduce operating costs by $430,356.00 per year. e. CSD’s marginal tax rate is 26.00%. f. CSD is 66.00% equity-financed. g. CSD’s 19.00-year, semi-annual pay, 5.73% coupon bond sells for $1,031.00. h. CSD’s stock currently has a market value of $20.05 and Mr. Bensen believes the market estimates that dividends will grow at…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 $2.46 million fully installed and has a 10 year life. It will be depreciated to a book value of $197,632.00 and sold for that amount in year 10. b. The Engineering Department spent $29,074.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,768.00. d. The PJX5 will reduce operating costs by $448,114.00 per year. e. CSD’s marginal tax rate is 21.00%. f. CSD is 60.00% equity-financed. g. CSD’s 10.00-year, semi-annual pay, 6.16% coupon bond sells for $1,014.00. h. CSD’s stock currently has a market value of $23.47 and Mr. Bensen believes the market estimates that dividends will grow at…#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 $1.83 million fully installed and has a 10 year life. It will be depreciated to a book value of $164,562.00 and sold for that amount in year 10. b. The Engineering Department spent $26,999.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,963.00. d. The PJX5 will reduce operating costs by $316,008.00 per year. e. CSD’s marginal tax rate is 36.00%. f. CSD is 59.00% equity-financed. g. CSD’s 20.00-year, semi-annual pay, 5.99% coupon bond sells for $1,013.00. h. CSD’s stock currently has a market value of $21.74 and Mr. Bensen believes the market estimates that dividends will grow…
- 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 $1.58 million fully installed and has a 10 year life. It will be depreciated to a book value of $107,984.00 and sold for that amount in year 10. b. The Engineering Department spent $30, 114.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,576.00. d. The PJX5 will reduce operating costs by $ 310,028.00 per year. e. CSD's marginal tax rate is 20.00%. f. CSD is 66.00% equity - financed. g. CSD's 14.00-year, semi-annual pay, 6.84% coupon bond sells for $1,032.00. h. CSD's stock currently has a market value of $22.92 and Mr. Bensen believes the market estimates that dividends will grow at…#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 $2.45 million fully installed and has a 10 year life. It will be depreciated to a book value of $267,003.00 and sold for that amount in year 10. b. The Engineering Department spent $30,417.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,769.00. d. The PJX5 will reduce operating costs by $451,005.00 per year. e. CSD's marginal tax rate is 23.00%. f. CSD is 61.00% equity-financed. g. CSD's 13.00-year, semi-annual pay, 5.00% coupon bond sells for $978.00. h. CSD's stock currently has a market value of $20.16 and Mr. Bensen believes the market estimates that dividends will grow at…#2 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 $1.76 million fully installed and has a 10 year life. It will be depreciated to a book value of $119,465.00 and sold for that amount in year 10. b. The Engineering Department spent $16,973.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,208.00. d. The PJX5 will reduce operating costs by $343,070.00 per year. e. CSD’s marginal tax rate is 24.00%. f. CSD is 65.00% equity-financed. g. CSD’s 19.00-year, semi-annual pay, 6.11% coupon bond sells for $976.00. h. CSD’s stock currently has a market value of $20.64 and Mr. Bensen believes the market estimates that dividends will grow…
- 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? (ROUND TO 2 DECIMAL PLACES.) a. The PJX5 will cost $1.83 million fully installed and has a 10 year life. It will be depreciated to a book value of $284,956.00 and sold for that amount in year 10. b. The Engineering Department spent $44,242.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,794.00. d. The PJX5 will reduce operating costs by $438,196.00 per year. e. CSD’s marginal tax rate is 27.00%. f. CSD is 63.00% equity-financed. g. CSD’s 16.00-year, semi-annual pay, 5.71% coupon bond sells for $958.00. h. CSD’s stock currently has a market value of $24.35 and Mr. Bensen believes the market estimates that…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? (ROUND TO 2 DECIMAL PLACES.) a. The PJX5 will cost $1.79 million fully installed and has a 10 year life. It will be depreciated to a book value of $146,115.00 and sold for that amount in year 10. b. The Engineering Department spent $23,587.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,144.00. d. The PJX5 will reduce operating costs by $310,064.00 per year. e. CSD’s marginal tax rate is 30.00%. f. CSD is 62.00% equity-financed. g. CSD’s 13.00-year, semi-annual pay, 6.37% coupon bond sells for $1,010.00. h. CSD’s stock currently has a market value of $21.43 and Mr. Bensen believes the market estimates…GSU Motor Works needs to select an assembly line for producing their new SUV. They have two options:• Option XYZ is a highly automated assembly line that has a large up-front cost but low maintenancecost over the years. This option will cost $114 million today with a yearly operating cost of $40million. The assembly line will last for 6 years and be sold for $48 million in 6 years.• Option GHI is a cheaper alternative with less technology, a longer life, but higher operating costs.This option will cost $168 million today with an annual operating cost of $32 million. Thisassembly line will last for 10 years and be sold for $23 million in 10 years.The firm’s cost of capital is 16%. Assume a tax rate of zero percent. The equivalent annual cost (EAC) for Option XYZ is $_______ million.The equivalent annual cost (EAC) for Option GHI is $_______ million.
- #39 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 $2.32 million fully installed and has a 10 year life. It will be depreciated to a book value of $223,927.00 and sold for that amount in year 10. b. The Engineering Department spent $29,992.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,688.00. d. The PJX5 will reduce operating costs by $481,420.00 per year. e. CSD's marginal tax rate is 36.00%. f. CSD is 67.00% equity inanced. g. CSD's 10.00-year, semi-annual pay, 5.05% coupon bond sells for $1,026.00. h. CSD's stock currently has a market value of $23.65 and Mr. Bensen believes the market estimates that dividends will grow at…Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned incroase 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 Derok the following information. What is the IRR of the PJX5? #2 a. The PJX5 will cost $1.66 million fully instaled and has a 10 year life. It wll be depreciated to a book value of $257,124.00 and sold for that amount in year 10. b. The Engineering Department spent $48,616.00 researching the various juicers. a. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,897.00. d. The PJXS will reduce operating costs by $496,802.00 per yoar. 0. CSD's marginal tax rate is 31.00%. 1. CSD is 58.00% equity-financed. 9. CSD» 12.00-yoar, semi-annual pay, 6.63% coupon bond sells for $1,038.00. h. CSD's stock currently has a market value of $23.50 and Mr. Bensen believes the market estimates that dividends will grow at…Ruff Motors needs to select an assembly line for producing their new SUV. They have two options:• Option A is a highly automated assembly line that has a large up-front cost but low maintenancecost over the years. This option will cost $8 million today with a yearly operating cost of $2 million.The assembly line will last for 5 years and be sold for $5 million in 5 years.• Option B is a cheaper alternative with less technology, a longer life, but higher operating costs.This option will cost $7 million today with an annual operating cost of $2.5 million. This assemblyline will last for 8 years and be sold for $1 million in 8 years.The firm’s cost of capital is 12%. Assume a tax rate of zero percent.The equivalent annual cost (EAC) for Option A is $_______ million.The equivalent annual cost (EAC) for Option B is $_______ million.