cy. places. 140 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJXS. 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 $2.10 million fully installed and has a 10 year life. It will be depreciated to a book value of $155,721.00 and sold for that amount in year 10. b. The Engineering Department spent $27,081.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $17.947.00. d. The PJX5 will reduce operating costs by $452,065.00 per year. e. CSD's marginal tax rate is 38.00%. f. CSD is 63.00% equity-financed. g. CSD's 17.00-year, semi-annual pay, 6.13% coupon bond sells for $991.00. h. CSD's stock currently has a market value of $24.53 and Mr. Bensen believes the market estimates that dividends will grow at 3.62% forever. Next year's dividend is projected to be $1.44. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimalformat rounded to 4 decimal places (ex:0.0924) Answer format: Currency: Round to: 2 decimal places. 138 Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.16% coupon bonds which sell for 97.43% of par. Their stock currently has a market value of $25.84 and Mr. Bensen believes the market estimates that dividends will grow at 3.48% forever. Next year's dividend is projected to be $2.88. Assuming a marginal tax rate of 21.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) 39 A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm's production process more efficient which in turn increases incremental cash flows. The GSU- 3300 produces incremental cash flows of $26,416.00 per year for 8 years and costs $99,521.00. The UGA-3000 produces incremental cash flows of $28,041.00 per year for 9 years and cost $124,438.00. The firm's WACC is 9.56%. What is the equivalent annual annuity of the GSU- 3300? Assume that there are no taxes. Submit Answer format: Currency: Round to: 2 decimal places