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826 Caspian Sea Drinks is considering the purchase of a plum juicer - the PJX5. There is no planned increase in production The PJX5 will

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826 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. Bonsen gave Derek the following information. What is the IRR of the PJX5? a, The PJX5 will cost $1.97 million fully installed and has a 10 your life. It will be depreciated to a book value of $125,828.00 and sold for that amount in year 10, b. The Engineering Department spent $36,270.00 researching the various juicers, a Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $22,487.00 d. The PjX5 wil reduce operating costs by $302,850.00 per year. o CSD's marginal tax rate is 38,00% 1. OSD is 71.00% equity-financed Q. CSD 10,00-year somi-annual pay, 5.53% coupon bond solls for $1,030.00 CSD's stock currently has a market value of $20.68 and Mr. Bonsen believes the market estimates that dividends will strow at 4,37% forever. Next year's dividend is projected to be $1.57 Samt Answer format: Percentage Round to: 2 decimal places (Example: 9.24% sign required WW accept decimal format rounded to 4 decimal places (Ox: 0.0924)

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