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please answer only if you are sure Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned
please answer only if you are sure
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 \$2.16 million fully installed and has a 10 year life. It will be depreciated to a book value of $119,646.00 and sold for that amount in year 10 . b. The Engineering Department spent $31,450.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,868.00. d. The PJX5 will reduce operating costs by $440,874.00 per year. e. CSD's marginal tax rate is 37.00%. f. CSD is 63.00% equity-financed. g. CSD's 18.00 -year, semi-annual pay, 6.84% coupon bond sells for $1,003.00. h. CSD's stock currently has a market value of \$20.11 and Mr. Bensen believes the market estimates that dividends will grow at 4.44% forever. Next year's dividend is projected to be $1.44. Answer format: Currency: Round to: 2 decimal places Step by Step Solution
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