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Caspian Sea Drinks is considering the purchase of a plum juicer -- the PJX5 There is no planned increase in production The PJX5 will reduce

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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 Benson gave Derek the following information What is the IRR of the PJX52 The PJX5 Will cost $2.00 million fully installed and has a 10 year life. It will be depreciated to a book value of $233,622.00 and sold for that amount in yea 10. b. The Engineering Department spent $24,656.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,556.00 d. The PJX5 will reduce operating costs by $326,946.00 per year. CSD's marginal tax rate is 26.00% 1. CSD is 60.00% equity-financed O CSD's 11 00 year, semi-annual pay 5 24% coupon bond sells for $982.00 h CSD's stock currently has a market value of $20.31 and Mr. Bensen believes the market estimates that dividends will grow at 232% forever. Next year's dividend is projected to be $1.72 Answer format: Percentage Round to: 2 decimal places (Example 9 24%, % sign required. Will accept decimal format rounded to decimal places (ex 0 09243)

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