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Caspian Sea Drinks is considering the purchase of a plum juicer the PJX 5 . There is no planned increase in production. The PJX 5

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 $1.63 million fully installed and has a 10 year life. It will be depreciated to a book value of $207,045.00 and sold for that amount in year 10.b. The Engineering Department spent $11,944.00 researching the various juicers.c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,631.00.d. The PJX5 will reduce operating costs by $396,982.00 per year.e. CSDs marginal tax rate is 37.00%.f. CSD is 67.00% equity-financed.g. CSDs 13.00-year, semi-annual pay, 5.14% coupon bond sells for $1,031.00.h. CSDs stock currently has a market value of $22.86 and Mr. Bensen believes the market estimates that dividends will grow at 2.53% forever. Next years dividend is projected to be $1.70. Submit Answer format: Currency: Round to: 2 decimal places.

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