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.

a. The PJX5 will cost $1.87 million fully installed and has a 10 year life. It will be depreciated to a book value of $166,564.00 and sold for that amount in year 10.

b. The Engineering Department spent $46,567.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,852.00.

d. The PJX5 will reduce operating costs by $467,000.00 per year.

e. CSD's marginal tax rate is 25.00%.

f. CSD is 63.00% equity-financed.

g. CSD's 14.00-year, semi-annual pay, 6.87% coupon bond sells for $955.00.

h. CSD's stock currently has a market value of $24.33 and Mr. Bensen believes the market estimates that dividends will grow at 2.24% forever. Next year's dividend is projected to be $1.55.

What is the IRR of the PJX5?