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is due tonight. pls help Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in

is due tonight. pls help image text in transcribed
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 $2.43 million fully installed and has a 10 year life. It will be depreciated to a book value of $120,445.00 and sold for that amount in year 10 . b. The Engineering Department spent $43,476.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,055.00. d. The PJX5 will reduce operating costs by $380,697.00 per year. e. CSD's marginal tax rate is 20.00%. f. CSD is 65.00% equity-financed. g. CSD's 19.00-year, semi-annual pay, 6.37% coupon bond sells for $979.00. h. CSD's stock currently has a market value of $20.05 and Mr. Bensen believes the market estimates that dividends will grow at 2.41% forever. Next year's dividend is projected to be $1.76. Answer format: Currency: Round to: 2 decimal places

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