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Casplan 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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Casplan 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 PJXS? a. The PJX5 will cost $240 million fully installed and has a 10 year life. It will be depreciated to a book value of $299,890.00 and sold for that amount in year 10 . b. The Engineering Department spent $34,031.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $21,237,00. d. The PJX5 will reduce operating costs by $399,787.00 per year e. CSD's marginal tax rate is 31.00% f. CSD is 7200% equity-financed 9. CSD's 10.00-year semi-annual pay. 6.81% coupon bond solls for $953.00 h. CSD's stock currently has a market value of $23.71 and Mr. Bensen belleves the market estimates that dividends will grow at 3.35% forever. Next year's dividend is projected to be $1.77. Answer format: Currency: Round fo: 2 decimal places

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