#35 unanswered not submitted Taylor United is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul is $3.93 million, plus $210,126.00 in installation costs. The firm will straight-line depreciate the equipment to zero using a 5-year recovery period. Additional sales from the overhaul should amount to $225,707.00 per year, and additional operating expenses and other costs (excluding depreciation) will amount to 35.00% of the additional sales. The firm has an ordinary tax rate of 38.00%. What is the operating cash flow for year 1 of this project? Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. #40 unanswered 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? not_submitted Attempts Remaining: Infinity a. The PJX5 will cost $2.46 million fully installed and has a 10 year life. It will be depreciated to a book value of $227,883.00 and sold for that amount in year 10. b. The Engineering Department spent $11,142.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,020.00. d. The PJX5 will reduce operating costs by $301,378.00 per year. e. CSD's marginal tax rate is 20.00%. f. CSD is 64.00% equity-financed. g. CSD's 11.00-year, semi-annual pay, 5.67% coupon bond sells for $969.00. h. CSD's stock currently has a market value of $24.48 and Mr. Bensen believes the market estimates that dividends will grow at 3.45% forever. Next year's dividend is projected to be $1.57. Submit 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))