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#1 C unanswered not_submitted Attempts Remaining: Infinity 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 NPV of the PJX5? a. The PJX5 will cost $1.81 million fully installed and has a 10 year life. It will be depreciated to a book value of $225,428.00 and sold for that amount in year 10. b. The Engineering Department spent $31,715.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,028.00. d. The PJX5 will reduce operating costs by $327,702.00 per year. e. CSD's marginal tax rate is 33.00%. f. CSD is 64.00% equity-financed. g. CSD's 19.00-year, semi-annual pay, 6.97% coupon bond sells for $962.00. h. CSD's stock currently has a market value of $21.75 and Mr. Bensen believes the market estimates that dividends will grow at 2.22% forever. Next year's dividend is projected to be $1.55. Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity 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 $2.06 million fully installed and has a 10 year life. It will be depreciated to a book value of $195,615.00 and sold for that amount in year 10 b. The Engineering Department spent $32,927.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $24,846.00. d. The PJX5 will reduce operating costs by $330,789.00 per year. e. CSD's marginal tax rate is 27.00%. f. CSD is 74.00% equity-financed. g. CSD's 18.00-year, semi-annual pay, 5.24% coupon bond sells for $966.00. h. CSD's stock currently has a market value of $24.18 and Mr. Bensen believes the market estimates that dividends will grow at 3.72% forever. Next year's dividend is projected to be $1.71. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format