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Caspian Sea Drinks is considering the purchase of a plum juicer– the PJX5. There is no planned increase in production. The PJX5will reduce costs by squeezing more juice from each plum and doingso in a more efficient manner. Mr. Bensen gave Derek the followinginformation. What is the IRR of the PJX5?a. The PJX5 will cost $1.74 million fully installed and has a 10year life. It will be depreciated to a book value of $284,936.00and sold for that amount in year 10.b. The Engineering Department spent $49,835.00 researching thevarious juicers.c. Portions of the plant floor have been redesigned toaccommodate the juicer at a cost of $21,599.00.d. The PJX5 will reduce operating costs by $407,610.00 peryear.e. CSD’s marginal tax rate is 34.00%.f. CSD is 61.00% equity-financed.g. CSD’s 19.00-year, semi-annual pay, 6.59% coupon bond sellsfor $997.00.h. CSD’s stock currently has a market value of $21.12 and Mr.Bensen believes the market estimates that dividends will grow at2.48% forever. Next year’s dividend is projected to be $1.73.