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nanswered Answered Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production The PJX5

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nanswered Answered 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 th following information. What is the NPV of the PJX5? a. The PJX5 will cost 52.29 million fully installed and has a 10 year life. It will be depreciated to a book value of $187.145.00 and sold that amount in year 10. b. The Engineering Department spent $45,484.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,325.00 d. The PJX5 will reduce operating costs by $490,407.00 per year. e CSD's marginal tax rate is 29.00% f. CSD is 75.00% equity-financed 9. CSD's 13.00-year, semi-annual pay, 6. 19% coupon bond sells for h. CSD's stock currently has a market value of $21.14 and Mr. Bensen believes the market estimates that dividends will grow at 3.96% forever. Next year's dividend is projected to be $1.56. 910 Submit Ansar format: Currency: Round to: 2 decimal places

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