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Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. 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 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 $1.91 million fully installed and has a 10 year life. It will be depreciated to a book value of $145,723.00 and sold for that amount in year 10. b. The Engineering Department spent $27.490.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,141.00 d. The PJX5 will reduce operating costs by S456.800.00 per year. e. CSD's marginal tax rate is 36.00% 1. CSD is 50.00% equity-financed. 9. CSD's 17.00-year, semi-annual pay, 8:21% coupon bond sells for $962,00 h. CSD's stock currently has a market value of $22.98 and Mr. Bensen believes the market estimates that dividends will grow at 2.79% forever. Next year's dividend is projected to be $1.71 Submit A newer format: Currency: Round to: 2 decimal places

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