mike is considering the purchase of a plum juicer the JX5. There is no planned increase in production. The JX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. rick gave jim the following information. What is the NPV of the JX5?

a. The JX5 will cost $2.17 million fully installed and has a 10 year life. It will be depreciated to a book value of $225,732.00 and sold for that amount in year 10.

b. The Engineering Department spent $41,773.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,003.00.

d. The JX5 will reduce operating costs by $346,414.00 per year.

e. mike's marginal tax rate is 37.00%.

f. mike is 58.00% equity-financed.

g. mikes 15.00-year, semi-annual pay, 6.84% coupon bond sells for $1,043.00.

h. mikes stock currently has a market value of $23.80 and Mr. rick believes the market estimates that dividends will grow at 4.43% forever. Next years dividend is projected to be $1.74.

Round to: 2 decimal places.