User Account

All Pages

What is the irr of the pjx5

Assignment Help Finance Basics
Reference no: EM132509251

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 $1.89 million fully installed and has a 10 year life. It will be depreciated to a book value of $297,223.00 and sold for that amount in year 10.

b. The Engineering Department spent $31,122.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,150.00.

d. The PJX5 will reduce operating costs by $332,045.00 per year.

e. CSD's marginal tax rate is 20.00%.

f. CSD is 73.00% equity-financed.

g. CSD's 12.00-year, semi-annual pay, 5.77% coupon bond sells for $958.00.

h. CSD's stock currently has a market value of $24.73 and Mr. Bensen believes the market estimates that dividends will grow at 4.32% forever. Next year's dividend is projected to be $1.76.

Reference no: EM132509251

Questions Cloud

Discuss why employees who are committed will be less : Identify what you thought was the most important concept(s), method(s), the term(s), and/or any other thing that you felt was worthy of your understanding.
How hypothesis testing and confidence intervals are used : Evaluate and provide examples of how hypothesis testing and confidence intervals are used together in health care research. Provide a workplace example.
Selling price is necessary for your total aud return : What year end selling price is necessary for your total AUD return to equal 9.3%?
Negligence and product liability are two of our main topics : Negligence and product liability are two of our main topics for this week. Negligence is an unintentional tort because it happens by accident.
What is the irr of the pjx5 : 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
Evaluation of national cancer registry national study : Using the national study of data as a supporting document, create a proposal of how to organize the institution's annual cancer registry report.
What role of preparedness should emergency management plan : Other than Law Enforcement security planners, what role of preparedness should emergency management planners take in getting ready for a fixed site event.
Evaluating applications for real estate loans : Explain the major questions or issues that a bank must consider in evaluating nearly all loans requests and List and define types of loans granted
Is a strategy samsung has used explain why or why not : "Expansion by Selling Existing Products to New Segments or Countries," is this a strategy Samsung has used? Explain why or why not.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determining the average annual return

She can save $5,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 10 percent. If she follows your advice, how much money would she have at age 60?

  Mary ott hotels wants to determine the minimum cost of

mary ott hotels wants to determine the minimum cost of capital point for the firm. assume it is considering the

  Describe how the definitions of assets and liabilities

Describe how the definitions of assets and liabilities have evolved over the years.

  Investment fund for the eastern football league

You are chairperson of the investment fund for the Eastern Football League. You are asked to set up a fund of semiannual payments to be compounded semiannually to accumulate a sum of $100,000 after 10 years at an 8 percent annual rate (20 payments..

  Calculate the necessary size of the annual deposit

College expenses are incurred at the beginning of each school year. Calculate the necessary size of the annual deposit. (please show process)

  What was the size of the investment in the fund

Andrew set up a fund that would pay his family $4,000 at the beginning of every month, in perpetuity. What was the size of the investment in the fund.

  What is the organization''s current business model?

What is the organization's current business model?

  Assuming monthly compounding

ow much interest will you pay in the 11th year of a $100,000, 5.5%, 25 year mortgage, assuming monthly compounding?

  How current changes in federal and local policies influence

How might current changes in federal, state, and local policies influence decisions to be made? Include a schedule of assumptions for your proposal. What questions might the board ask regarding feasibility of this proposal?

  What is the effective annual rate

What is the effective annual rate of 24% APR compounded every 2 years?

  Tax liability on its ethiopian? subsidiary

?However, the United States gives a full tax credit for foreign taxes paid up to the amount of the U.S. tax liability.

  What is the present value of a 100 lump sum to be received

1 what is the present value of a 100 lump sum to be received in 5 years if the opportunity cost rate is 10 percent?2

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd