Question: please show steps. i will give a thumbs up if correct! Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5.

please show steps. i will give a thumbs up if correct!
please show steps. i will give a thumbs up if correct! Caspian

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 $1.85 million fully installed and has a 10 year life. It will be depreciated to a book value of $138,006.00 and sold for that amount in year 10. b. The Engineering Department spent $33,121.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $19,160.00. d. The PJX5 will reduce operating costs by $340,056.00 per year. e. CSD's marginal tax rate is 32.00%. f. CSD is 73.00% equity-financed. g. CSD's 15.00-year, semi-annual pay, 5.57% coupon bond sells for $985.00. h. CSD's stock currently has a market value of $22.60 and Mr. Bensen believes the market estimates that dividends will grow at 2.40% forever. Next year's dividend is projected to be $1.60. Answer format: Currency: Round to: 2 decimal places

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