136 Attemp 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 IRR of the PJX5? a. The PJX5 will cost $1.67 million fully installed and has a 10 year life. It will be depreciated to a book value of $217,049.00 and sold for that amount in year 10 b. The Engineering Department spent $17,458.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,026.00. d. The PJX5 will reduce operating costs by $360,903.00 per year. e. CSD's marginal tax rate is 23.00%. f. CSD is 65.00% equity-financed. g. CSD's 20.00-year, semi-annual pay, 5.07% coupon bond sells for $1,025.00. h. CSD's stock currently has a market value of $24.14 and Mr. Bensen believes the market estimates that dividends will grow at 4.35% forever. Next year's dividend is projected to be $1.72. 10- tet th Submit al 5.5 97.1 1 Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) 5.880 LOR Points: 28.8 / 40 Grade: 72% Progress: 72.5% Time Remaining: 74:46 Hide tv 4 w MacBook Pro 136 Attemp 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 IRR of the PJX5? a. The PJX5 will cost $1.67 million fully installed and has a 10 year life. It will be depreciated to a book value of $217,049.00 and sold for that amount in year 10 b. The Engineering Department spent $17,458.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,026.00. d. The PJX5 will reduce operating costs by $360,903.00 per year. e. CSD's marginal tax rate is 23.00%. f. CSD is 65.00% equity-financed. g. CSD's 20.00-year, semi-annual pay, 5.07% coupon bond sells for $1,025.00. h. CSD's stock currently has a market value of $24.14 and Mr. Bensen believes the market estimates that dividends will grow at 4.35% forever. Next year's dividend is projected to be $1.72. 10- tet th Submit al 5.5 97.1 1 Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) 5.880 LOR Points: 28.8 / 40 Grade: 72% Progress: 72.5% Time Remaining: 74:46 Hide tv 4 w MacBook Pro