$1.$ Caspian Sea Drinks is considering the purchase of a plum juicer $$ the PJX$5.$ There is no planned increase in production. The PJX$5$ 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 PJX$5?$

a$.$ The PJX$5$ will cost $$2\mathrm{.}24$ million fully installed and has a $10$ year life. It will be depreciated to a book value of $$150,061\mathrm{.}00$ and sold for that amount in year $10.$

b$.$ The Engineering Department spent $$25,359\mathrm{.}00$ researching the various juicers.

c$.$ Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $$20,381\mathrm{.}00.$

d$.$ The PJX$5$ will reduce operating costs by $$361,094\mathrm{.}00$ per year.

e$.$ CSD$$s marginal tax rate is $28\mathrm{.}00\%.$

f$.$ CSD is $75\mathrm{.}00\%$ equity$-$financed.

g$.$ CSD$$s $15\mathrm{.}00-$year, semi$-$annual pay, $5\mathrm{.}16\%$ coupon bond sells for $$1,016\mathrm{.}00.$

h$.$ CSD$$s stock currently has a market value of $$21\mathrm{.}41$ and Mr$.$ Bensen believes the market estimates that dividends will grow at $4\mathrm{.}13\%$ forever. Next year$$s dividend is projected to be $$1\mathrm{.}69.$

$2.$ Caspian Sea Drinks is considering the purchase of a plum juicer $$ the PJX$5.$ There is no planned increase in production. The PJX$5$ 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 IRR of the PJX$5?$

a$.$ The PJX$5$ will cost $$2\mathrm{.}48$ million fully installed and has a $10$ year life. It will be depreciated to a book value of $$242,797\mathrm{.}00$ and sold for that amount in year $10.$

b$.$ The Engineering Department spent $$45,613\mathrm{.}00$ researching the various juicers.

c$.$ Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $$21,389\mathrm{.}00.$

d$.$ The PJX$5$ will reduce operating costs by $$357,453\mathrm{.}00$ per year.

e$.$ CSD$$s marginal tax rate is $22\mathrm{.}00\%.$

f$.$ CSD is $58\mathrm{.}00\%$ equity$-$financed.

g$.$ CSD$$s $18\mathrm{.}00-$year, semi$-$annual pay, $6\mathrm{.}39\%$ coupon bond sells for $$995\mathrm{.}00.$

h$.$ CSD$$s stock currently has a market value of $$21\mathrm{.}91$ and Mr$.$ Bensen believes the market estimates that dividends will grow at $2\mathrm{.}07\%$ forever. Next year$$s dividend is projected to be $$1\mathrm{.}72.$