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834 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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834 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 $1.52 million fully installed and has a 10 year life. It will be depreciated to a book value of $289,646.00 and sold for that amount in year 10. b. The Engineering Department spent $29,336.00 researching the various juicers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,232.00. d. The PJX5 will reduce operating costs by $357,130.00 per year. e. CSD's marginal tax rate is 26.00%. f. CSD is 60.00% equity-financed. g. CSD's 17.00-year, semi-annual pay, 6.10% coupon bond sells for $1,005.00. h. CSD's stock currently has a market value of $21.64 and Mr. Bensen believes the market estimates that dividends will grow at 3.21% forever. Next year's dividend is projected to be $1.47. Submit Answer format: Currency: Round to: 2 decimal places. c unanswered not submitted Attempts Remaining: Infinity

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