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#34 unanswe Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production. The PJX5
#34 unanswe 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? not submit Attempts Remain Infi a. The PJX5 will cost $1.59 million fully installed and has a 10 year life. It will be depreciated to a book value $250,468.00 and sold for that amount in year 10. b. The Engineering Department spent $34,583.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,706.00. d. The PJX5 will reduce operating costs by $313,403.00 per year. e. CSD's marginal rate is 26.00%. f. CSD is 59.00% equity-financed. g. CSD's 19.00-year, semi-annual pay, 6.82% coupon bond sells for $1,030.00. h. CSD's stock currently has a market value of $24.80 and Mr. Bensen believes the market estimates that dividends will grow at 4.37% forever. Next year's dividend is projected to be $1.56. Submit Answer format: Currency: Round to: 2 decimal places
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