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Orange Monster Drinks is considering the purchase of a plum juicer the Moment Maid. The company is provided with the following information. Orange Monster Drinks

Orange Monster Drinks is considering the purchase of a plum juicer the Moment Maid. The company is provided with the following information. Orange Monster Drinks is considering the purchase of a plum juicer the Moment Maid. The company is provided with the following information.

The juicer will cost $4,825,000, fully installed, and has a 15-year life. It will be depreciated to a book value of $400,000 and sold for that amount in year 15.

The new juicer will generate $950,000 in sales each year for the next 15 years.

Because of the expansion, operating costs will increase by $300,000 per year.

The company will increase net working capital by $70,000 at the beginning of the project; this amount will be recovered at the end of the life of the project.

The Engineering department spent $45,000 researching the various juicers.

Last month, portions of the plant floor were redesigned to accommodate the juicer. The cost of this modification was $175,000. The company that did the work sent Orange Monster Drinks an invoice last week; Orange Monster Drinks plans to pay the $175,000 tomorrow.

Orange Monster Drinks marginal tax rate is 30%.

Orange Monster Drinks is 55% equity-financed and 45% debt financed.

Orange Monster Drinks 25-years remaining to maturity, semi-annual payment, 6% coupon bonds sell for $916.00.

Orange Monster Drinks stock currently has a market value of $20.00 and the company believes the market estimates that dividends will grow at 2.75% forever. Next years dividend is projected to be $1.68. 41. The IRR of the project is ______%. 42. The WACC of the Orange Monster Drinks is _______%. 43. The NPV of the project is $_______.

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