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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 julce 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 $2.14 million fully installed and has a 10 year life. It will be depreclated to a book value of b. The Engineering Department spent $14,754.00 researching the various julcers. c. Portions of the plant floor have been redesigned to accommodate the julcer at a cost of $18,066.00. d. The PJX5 will reduce operating costs by $398,511.00 per year. e. CSD's marginal tax rate is 29.00%. f. CSD is 63.00% equity-financed. g. CSD's 11.00-year, seml-annual pay, 5.95% coupon bond sells for $966.00. h. CSD's stock currently has a market value of $20.47 and Mr. Bensen belleves the market estimates that dividends will grow at 3.58% forever. Next year's dividend is projected to be $1.75. Answer format: Percentage Round to: 2 decimal places (Example: 9.24%,% slgn required. Will accept decimal tormat rounded to 4 decimal places (ex;0.0924))

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