#18 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 $2.35 million fully installed and has a 10 year life. It will be depreciated to a book value of $239,438.00 and sold for that amount in year 10. b. The Engineering Department spent $44,100.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,937.00. d. The PJX5 will reduce operating costs by $351,122.00 per year. e. CSD's marginal tax rate is 37.00%. f. CSD is 55.00% equity-financed. g. CSD's 16.00-year, semi-annual pay, 5.19% coupon bond sells for $987.00. h. CSD's stock currently has a market value of $24.72 and Mr. Bensen believes the market estimates that dividends will grow at 2.33% forever. Next year's dividend is projected to be $1.58. Submit Answer format: Currency: Round to: 2 decimal places. #18 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 $2.35 million fully installed and has a 10 year life. It will be depreciated to a book value of $239,438.00 and sold for that amount in year 10. b. The Engineering Department spent $44,100.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,937.00. d. The PJX5 will reduce operating costs by $351,122.00 per year. e. CSD's marginal tax rate is 37.00%. f. CSD is 55.00% equity-financed. g. CSD's 16.00-year, semi-annual pay, 5.19% coupon bond sells for $987.00. h. CSD's stock currently has a market value of $24.72 and Mr. Bensen believes the market estimates that dividends will grow at 2.33% forever. Next year's dividend is projected to be $1.58. Submit Answer format: Currency: Round to: 2 decimal places