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?

1. The PJX5 will cost $1.50 million fully installed and has a 10 year life. It will be depreciated to a book value of $234,661.00 and sold for that amount in year 10.
2. The Engineering Department spent $39,327.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21.193.00

1. The PJX5 will reduce operating costs by $488,901.00 per year.
2. CSD's marginal tax rate is 37.00%.

f. CSD is 64.00% equity-financed.

g. CSD's 11.00-year, semi-annual pay, 6.69% coupon bond sells for $979.00.

h. CSD's stock currently has a market value of $21.61 and Mr. Bensen believes the market estimates that dividends will arow at 2.15% forever. Next ear's dividend is projected to be

Round to: 2 decimal places.