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 $1.97 million fully installed and has a 10 year life. It will be depreciated to a book value of $103,389.00 and sold for that amount in year 10. b. The Engineering Department spent $26,650.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,450.00. d. The PJX5 will reduce operating costs by $344,315.00 per year. e. CSD's marginal tax rate is 37.00%. f. CSD is 73.00% equity-financed. g. CSD's 19.00-year, semi-annual pay, 5.44% coupon bond sells for $951.00. h. CSD's stock currently has a market value of $21.88 and Mr. Bensen believes the market estimates that dividends will grow at 2.25% forever. Next year's dividend is projected to be $1.59.