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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 $1.74 milion fully installed and has a 10 year life. If will be depreciated to a book value of $271,994.00 and sold for that amount in year 10. b. The Engineering Department spent $45,117.00 researching the various juicers. C. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,489.00 d. The PJX5 will reduce operating costs by $386,09300 per year e CSD's marginal tax rate is 2700%. f. CSD is 61.00% equity-financed. 9. CSD's 18.00-year, semi-annual pay, 5.37% coupon bond sells for $987.00 h. CSO's stock currently has a market value of $21.66 and Mr. Bensen believes the market estimates that dividends will grow at 2.56% forever Next year's dividend is projected to be $1.78 Answer format: Currency Round to 2 decimal places

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