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 $1.64 million fully installed and has a 10 year life. It will be depreciated to a book value of $168,902.00 and sold for that amount in year 10 b. The Engineering Department spent $37,421.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,498.00 d. The PJX5 will reduce operating costs by $491,741.00 per year. e. CSD's marginal tax rate is 33.00%. f. CSD is 56.00% equity-financed. g. CSD's 13.00-year, semi-annual pay, 5.80% coupon bond sells for $1,022.00. h. CSDs s ock currently has a market value o $21.85 and Mr. Bensen believes the market estimates hat di de as wil grow at 31 % or ver Next ear sa den $1.68 s ro ected to Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here.. 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 $1.64 million fully installed and has a 10 year life. It will be depreciated to a book value of $168,902.00 and sold for that amount in year 10 b. The Engineering Department spent $37,421.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,498.00 d. The PJX5 will reduce operating costs by $491,741.00 per year. e. CSD's marginal tax rate is 33.00%. f. CSD is 56.00% equity-financed. g. CSD's 13.00-year, semi-annual pay, 5.80% coupon bond sells for $1,022.00. h. CSDs s ock currently has a market value o $21.85 and Mr. Bensen believes the market estimates hat di de as wil grow at 31 % or ver Next ear sa den $1.68 s ro ected to Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here
