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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 PJXS 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 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 PJX5? B. The PJX5 will cost 5200 million fully installed and has a 10 year life. It will be depreciated to a book value of $167,284.00 and sold for that amount in year 10 . b. The Engineering Department spent $19,186.00 researching the various/ulcers. c. Portions of the plant floor have been redesigned to accommodale the fuicer at a cost of $21,74900. d The PJX5 will reduce operating costs by $466,355.00 per year e esDismarginal tax rate is 25.00%. f CSD.is: 71009 equity-financed 9 CSDY 10.00 yoar semi-annual pay, 6.61% coupon bond selle for $993.00. b Cosps stock currently has a market value of $23.71 and Mr. Bensen belleves the market estimates that dividends will grow at 2379 forever Next year's cividend is projected to be 51.65 rounver to a decimat placestex 0.09241

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