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10 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5 There is no planned increase in production The PJX5 will

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10 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 $1.90 million fully installed and has a 10 year life. It will be depreciated to a book value of $198.462.00 and sold for that amount in year 10. b. The Engineering Department spent $23,342.00 researching the various juicers c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,498,00 d. The PJX5 will reduce operating costs by $397.906.00 per year. e: CSD's marginal tax rate is 38.00%. 1. CSD is 58.00% equity-financed CSD's 11.00-year, semi-annual pay, 5,63% coupon bond sells for $1,031.00, h. CSD's stock currently has a market value of $23,90 and Mr. Bonsen believes the market estimates that dividends will grow at 3.93% forever Next year's dividend is projected to be $1.84 Submit Answer format: Currency: Round to: 2 decimal places

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