31 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX6. 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 $2.29 million fully installed and has a 10 year life. It will be depreciated to a book value of $280,010,00 and sold for that amount in year 10. b. The Engineering Department spent $38,329.00 researching the various julcurs. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,935.00 d. The PjX5 will reduce operating costs by S407,950.00 per year. e. CSD's marginal tax rate is 22.00%. f. CSD is 56.00% equity-financed. g. CSD's 12.00-year, semi-annual pay, 5.98% coupon bond sells for $1,036.00. H, CSD's stock currently has a market value of $22.29 and Mr. Benson believes the market estimates that dividends will grow at 2.29% forever. Next year's dividend in projected to be $1,60 Submit Answer format: Currency: Round to: 2 decimal places 35 Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $22.00 million. The plant and equpment will be depreciated over 10 years to a book value of $3.00 million, and sold for that amount in year 10. Net working capital will increase by $1.00 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $8.58 million per year and cost $2.05 million per year over the 10-year life of the project. Marketing estimates 20.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 25.00%. The WACC is 14.00%. Find the NPV (net present value). Submit Answer format: Currency: Round to: 2 decimal places