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Caspian Sea Drinks is considering the purchase of a plum juicer - the P.X5. There is no planned increase in production. The PJXS will reduce

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Caspian Sea Drinks is considering the purchase of a plum juicer - the P.X5. There is no planned increase in production. The PJXS will reduce costs by squeezing more julce from each plum and doing so in a more efficlent manner. Mr. Bensen gave Derek the following information. What is the IRR of the PJX.5? a. The PJX5 will cost \$2.14 million fully installed and has a 10 year ife. It will be depreciated to a book value of $161,859.00 and sold for that amount in year 10. b. The Engineering Department spent $28,211.00 researching the various julcers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,421.00. d. The PJX5 will reduce operating costs by $343,254,00 per year e. CSD's marginal tax rate is 35.00%. f. CSD is 75.00% equity-financed. 9. CSD's 10.00-year, semi-annual pay, 6.55% coupon bond sells for 51,001.00. h. CSD's stock currently has a market value of $24.88 and Mr. Bensen belleves the market estimates that dividends will grow at 3.64% forever. Next year's dividend is projected to be $1.43. Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % slan requird. Will accept cecimar format rounded to 4 decima) places (ex;0.0924) ) Casplan Sea Drinks is considering the purchase of a plum julcer - the PJX5. There is no planned increase in production. The PJXS 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 PJXS5? a. The PJX5 will cost \$2.14 million fully installed and has a 10 year life. It will be depreciated to a book value of $161,859.00 and sold for that amount in year 10. b. The Engineering Department spent $28,211.00 researching the various julcers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $15,421.00. d. The PJXS will reduce operating costs by $343,254.00 per year. e. CSD's marginal tax rate is 35.00%. f. CSD is 75.00% equity-financed. 9. CSD's 10.00-year, semi-annual pay, 6.55% coupon bond sells for $1,001.00. h. CSD's stock currently has a market value of $24.88 and Mr. Bensen believes the market estimates that dividends will grow at 3.64% forever. Next year's dividend is projected to be $1.43. 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))

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