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Caspian Sea Drinks considering the purchase of a plum juicer - the PJXS. Theres no planned increase in production. The PJXS will reduce costs by

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Caspian Sea Drinks considering the purchase of a plum juicer - the PJXS. Theres no planned increase in production. The PJXS 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 PJXS? The P wil.com 51.80 milion tully instaled and has a 10 years. It will be depreciated to a book value of $141,023.00 and sold for that amount in year 10 The Engineering Department spent $13,058.00 researching the various juicers Portions of the plant for tuve been redesigned to accommodate the juicer at a cost of $17.999,00 a The PS WE doce operating costs by $316.816.00 per your CSO margrate is 27.00 LCSO 50 DON Bone g. CSD 11.00-manual pay 5 50% coupon bond sols for $1.001.00 11. CSO occurrently has a more of $20.03 and Mr. Bansen boloves the marketestimates that dividends will grow at 20% forever. Neast year's dividend is projected to be 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 $1.89 million fully installed and has a 10 year life. It will be depreciated to a book value of $141,023.00 and sold for that amount in year 10. b. The Engineering Department spent $13,058.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,959.00. d. The PJX5 will reduce operating costs by $318,816.00 per year. e. CSD's marginal tax rate is 27.00%. f. CSD is 60.00% equity-financed. g. CSD's 11.00-year, semi-annual pay, 5.50% coupon bond sells for $1,004.00. h. CSD's stock currently has a market value of $20.03 and Mr. Bensen believes the market estimates that dividends will grow at 2.08% forever. Next year's dividend is projected to be $1.63. Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here

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