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 $1.59 million fully installed and has a 10 year life. It will be depreciated to a book value of $107,199.00 and sold for that amount in year 10. b. The Engineering Department spent $42,912.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,719.00. d. The PJX5 will reduce operating costs by $395,469.00 per year. e. CSDs marginal tax rate is 26.00%. f. CSD is 73.00% equity-financed. g. CSDs 12.00-year, semi-annual pay, 5.04% coupon bond sells for $979.00. h. CSDs stock currently has a market value of $23.20 and Mr. Bensen believes the market estimates that dividends will grow at 3.68% forever. Next years dividend is projected to be $1.62.