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

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Caspian Sea Drinks is considering the purchase of a plum juicer - the PJXS. 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 $200 million fully installed and has a 10 year life it will be depreciated to a book value of $127 601.00 and sold for that amount in year 10 b. The Engineering Department spent $22.450.00 researching the various juicers c Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,496.00. d. The PJX5 will reduce operating costs by 5415,009 00 per year. e CSD's marginal tax rate is 20.00% 1. CSD is 70.00% equity-financed 9 CSO's 19.00-year semi-annual pay, 5.54% coupon bond sells for $955.00 h CSD's stock currently has a market value of 523 20 and Mr Bensen believes the market estimates that dividends will grow at 2.08% forever Next year's dividend is projected to be 5151 Submit Answer format: Currency: Round to 2 decimal places

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