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

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a Caspian Sea Drinks is considering the purchase of a plum juicer - the PJXS. 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. M Bensen gave Derek the following information. What is the NPV of the PJX5? a. The PJX5 will cost $2.43 million fully installed and has a 10 year life. It will be depreciated to a book value of $278,260.00 and sold for that amount in year 10, b. The Engineering Department spent $18.239.00 researching the various juice c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21.564 00 a. The PJXS will reduce operating costs by S494.980.00 per year e. CSD's marginal tax rate is 38.00%. 1. CSD is 74.00% equity-financed. g. CSD's 11.00 year, semi-annual pay, 5.50% coupon bond sells for $981.00 h. CSD's stock currently has a market value of $22.38 and Mr. Bensen believes the market estimates that dividends will grow at 3.5296 forever Next years dividend is projected to be $1.41. Submit Answer format: Currency: Round to: 2 decimal places

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