Caspian Sea Drinks is considering the purchase of a plum juicer the PJX 5 . There is
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Caspian Sea Drinks is considering the purchase of a plum juicer the PJX There is no planned increase in production. The PJX 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 PJXa The PJX will cost $ million fully installed and has a year life. It will be depreciated to a book value of $ and sold for that amount in year b The Engineering Department spent $ researching the various juicers.c Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $d The PJX will reduce operating costs by $ per year.e CSDs marginal tax rate is f CSD is equityfinanced.g CSDs year, semiannual pay, coupon bond sells for $h CSDs stock currently has a market value of $ and Mr Bensen believes the market estimates that dividends will grow at forever. Next years dividend is projected to be $ Submit Answer format: Currency: Round to: decimal places.
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