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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. Bensen gave Derek the following information What is the IRR of the PJX5? a. The PjX5 will cost $1.54 million fully installed and has a 10 year life. It will be depreciated to a book value of $217.091.00 and sold for that amount in year 10 D. The Engineering Department spent $25 817 00 researching the various juicers c Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17,787.00 d The PjX5 will reduce operating costs by $319,019 00 per year e CSD's marginal tax rate is 37.00% 1 CSO IS 74.00% equity-financed g. CSD's 12.00-year, semi-annual pay, 6.95% coupon bond sells for $1,011.00 n CSD's stock currently has a market value of $20.54 and Mr. Bensen believes the market estimates that dividends will grow at 2.90% forever. Next year's dividend is projected to be $1.41 Submit Answer fomat: Percentage Round to 2 decimal places (Example 9.24% % sign required Wil accept decimal format rounded to 4 decimal places (ex: 0.0924))

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