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?

1. The PJX5 will cost $2.14 million fully installed and has a 10 year life. It will be depreciated to a book value of $202,099.00 and sold for that amount in year 10.
2. The Engineering Department spent $25,318.00 researching the various juicers.
3. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,500.00.
4. The PJX5 will reduce operating costs by $381,959.00 per year.

e. USD's marginal tax rate is 34.00%

'4. CSD is 65.00% equity-financed.

1. CSD's 16.00-year, semi-annual pay, 5.81% coupon bond sells for $1,047.00.
2. CSD's stock currently has a market value of $23.59 and Mr. Bensen believes the market estimates that dividends will grow at 2.60% forever. Next year's dividend is projected to be

51651

Percentage Round to: 2 decimal places (Example: 9.24%,% sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))