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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

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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 $2,49 miltion fully installed and has a 10 year life. It will be depreciated to a book value of $280,643.00 and sold for that amount in year 10 . b. The Engineering Department spent $15,127,00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,384.00. d. The PJX5 will reduce operating costs by $404,309.00 per year. e. CSD's marginal tax rate is 32.00%. f. CSD is 60.00% equity-financed. 9. CSD's 13.00 -year, semi-annual pay, 5.75% coupon bond sells for $1,045.00. h. CSD's stock currently has a market value of $21.31 and Mr. Bensen believes the market estimates that dividends will grow at 2.54% forever. Next year's dividend is projected to be $1.55. Answer format: Currency: Round to: 2 decimal places

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