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 $2.27 million fully installed and has a 10 year life. It will be depreciated to a book value of $215,744.00 and sold for that amount in year 10.

b. The Engineering Department spent $17,561.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,668.00.

d. The PJX5 will reduce operating costs by $386,663.00 per year.

e. CSDs marginal tax rate is 33.00%.

f. CSD is 70.00% equity-financed.

g. CSDs 10.00-year, semi-annual pay, 6.39% coupon bond sells for $959.00.

h. CSDs stock currently has a market value of $21.18 and Mr. Bensen believes the market estimates that dividends will grow at 4.48% forever. Next years dividend is projected to be $1.64.

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? Attempts Remaining a. The PJX5 will cost $2.27 million fully installed and has a 10 year life. It Infinit will be depreciated to a book value of $215,744.00 and sold for that amount in year 10. b. The Engineering Department spent $17,561.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,668.00. d. The PJX5 will reduce operating costs by $386,663.00 per year. e. CSD's marginal tax rate is 33.00%. f. CSD is 70.00% equity-financed. g. CSD's 10.00-year, semi-annual pay, 6.39% coupon bond sells for $959.00. h. CSD's stock currently has a market value of $21.18 and Mr. Bensen believes the market estimates that dividends will grow at 4.48% forever. Next year's dividend is projected to be $1.64