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2 Caspian Sea Drinks is considering the purchase of a plum juicer - the PjX5....

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2 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 Derok the following information. What is the IRR of the PJXS? a. The PJXS will cost $1.66 million fully installed and has a 10 year life. It will be depreciated to a book value ot $257,124.00 and sold for that amount in year 10. b. The Engineering Department spent $48,616.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $18,097.00 d. The PJX5 will reduce operating costs by $496,802.00 per year, 6. CSD's marginal tax rate is 31.00% 1. CSD is 58.00% equity-financed 9. CSD 12.00-year, semi-annual pay, 6.63% coupon bond solls for $1,038.00, h. CSD's stock currently has a market value of $23,50 and Mr. Bensen badioves the market estimates that dividends will grow at 3.34% forever. Next year's dividend is projected to be $1.47. Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24% % sign required. Will accept decimal format rounded to 4 decimal places (exc 0.0024))

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