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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

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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 $1.94 million fully installed and has a 10 year life. It will be depreciated to a book value of $269,054.00 and sold for that amount in year 10 b. The Engineering Department spent $12, 102.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21,860.00. d. The PJX5 will reduce operating costs by S430,410.00 per year. e. CSD's marginal tax rate is 30.00%. f. CSD is 63.00% equity-financed. g. CSD's 17.00-year, semi-annual pay, 6.95% coupon bond sells for $1,028.00. h. CSD's stock currently has a market value of $23.03 and Mr. Bensen believes the market estimates that dividends will grow at 3.29% forever. Next year's dividend is projected to be $1.47. Submit W Answer format: Currency: Round to: 2 decimal places

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