Question: Show your work please. #2 Caspian Sea Drinks is considering the purchase of a plum juicer the PJX5. There is no planned increase in production.

Show your work please. #2 Caspian Sea Drinks is considering the purchaseShow your work please.

#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 Derek the following information. What is the IRR of the PJX5? a. The PJX5 will cost $1.73 million fully installed and has a 10 year life. It will be depreciated to a book value of $131,267.00 and sold for that amount in year 10. b. The Engineering Department spent $17,559.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $23,674.00. d. The PJX5 will reduce operating costs by $328,082.00 per year. e. CSD's marginal tax rate is 32.00%. f. CSD is 72.00% equity-financed. g. CSD's 18.00-year, semi-annual pay, 5.73% coupon bond sells for $1,021.00. h. CSD's stock currently has a market value of $24.44 and Mr. Bensen believes the market estimates that dividends will grow at 2.33% forever. Next year's dividend is projected to be $1.70. 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)) #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 Derek the following information. What is the IRR of the PJX5? a. The PJX5 will cost $1.73 million fully installed and has a 10 year life. It will be depreciated to a book value of $131,267.00 and sold for that amount in year 10. b. The Engineering Department spent $17,559.00 researching the various juicers. c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $23,674.00. d. The PJX5 will reduce operating costs by $328,082.00 per year. e. CSD's marginal tax rate is 32.00%. f. CSD is 72.00% equity-financed. g. CSD's 18.00-year, semi-annual pay, 5.73% coupon bond sells for $1,021.00. h. CSD's stock currently has a market value of $24.44 and Mr. Bensen believes the market estimates that dividends will grow at 2.33% forever. Next year's dividend is projected to be $1.70. 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))

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