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o Caspian Sea Drinks is considering the purchase of a plum juicer - the PJXs. There is no planned increase in production. The PJXs will

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o Caspian Sea Drinks is considering the purchase of a plum juicer - the PJXs. There is no planned increase in production. The PJXs 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 PJXs will cost $1.78 million fully Installed and has a 10 year life. It will be depreciated to a book value of $171,577.00 and sold for that amount in year 10. b. The Engineering Department spent $43,446.00 researching the various ulcers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,409.00. d. The PJXS will reduce operating costs by $434,349.00 per year. e. CSD's marginal tax rate is 36.00%. 1. CSD is 72.00% equity-financed. G. CSD's 13.00-year, semi-annual pay, 5.50% coupon bond sells for $977.00. h. CSD's stock currently has a market value of $22.36 and Mr. Bensen belleves the market estimates that dividends will grow at 2.78% forever. Next year's dividend is projected to be $1.76. Submit Answer format: Currency: Round to: 2 decimal places

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