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 $2.31 million fully installed and has a 10 year life. It will be depreciated to a book value of $104,560.00 and sold for that amount in year 10. b. The Engineering Department spent $22,271.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,975.00. d. The PJX5 will reduce operating costs by $479,218.00 per year. e. CSDs marginal tax rate is 36.00%. f. CSD is 65.00% equity-financed. g. CSDs 12.00-year, semi-annual pay, 6.24% coupon bond sells for $1,008.00. h. CSDs stock currently has a market value of $21.92 and Mr. Bensen believes the market estimates that dividends will grow at 3.09% forever. Next years dividend is projected to be $1.60.

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))