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Casplan 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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Casplan 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 $2.47 million fully installed and has a 10 year iffe. It will be depreciated to a book value of $121,392.00 and sold for that amount in year 10. b The Engineering Department spent $11,139.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,070.00. d. The PJX5 will reduce operating costs by $311,18800 per year e. CSD's marginal tax rate is 38.00% f CSD is 68.00% equity-financed. 9 CSD's 10.00-year, semkannual pay, 5.78% coupon bond sells for $1,049.00 h. CSD's stock currently has a market value of $21.05 and Mr. Bensen believes the market estimates that dividends will grow at 3.44% forever. Next year's dividend is projected to be $1.79 Answer format: Percentage Round to: 2 decimal places (Example: 9.24% \% sign required. Wul accept decimal format rounded to 4 decimal places (ex 0.0924))

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