Question: USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING FIVE (5) QUESTIONS Orange Monster Drinks is considering the purchase of a plum juicer - the Moment

 USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING FIVE (5) QUESTIONS

USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING FIVE (5) QUESTIONS Orange Monster Drinks is considering the purchase of a plum juicer - the Moment Maid. The company is provided with the following information. Orange Monster Drinks is considering the purchase of a plum juicer - the Moment Maid. The company is provided with the following information. - The juicer will cost $4,825,000, fully installed, and has a 15 -year life. It will be depreciated to a book value of $400,000 and sold for that amount in year 15 . - The new juicer will generate $950,000 in sales each year for the next 15 years. - Because of the expansion, operating costs will increase by $300,000 per year. - The company will increase net working capital by $70,000 at the beginning of the project; this amount will be recovered at the end of the life of the project. - The Engineering department spent $45,000 researching the various juicers. - Last month, portions of the plant floor were redesigned to accommodate the juicer. The cost of this modification was $175,000. The company that did the work sent Orange Monster Drinks an invoice last week; Orange Monster Drinks plans to pay the $175,000 tomorrow. - Orange Monster Drinks' marginal tax rate is 30%. - Orange Monster Drinks is 55% equity-financed and 45% debt financed. - Orange Monster Drinks' 25-years remaining to maturity, semi-annual payment, 6% coupon bonds sell for $916.00. - Orange Monster Drinks' stock currently has a market value of $20.00 and the company believes the market estimates that dividends will grow at 2.75% forever. Next year's dividend is projected to be $1.68. 39. The initial cash flow of the project is 40. The incremental total cash flow of the project is in year 15 is $ 41. The IRR of the project is %. 42. The WACC of the Orange Monster Drinks is %. 43. The NPV of the project is $

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