PERL execution inside shell script / replace in file

Okay, I have a function that was written in PERL, and I could try to convert it to shell but I think it would be easier just to use a PERL script and have it print the code into the shell, but I am having troubles getting it to work. Here is the PERL script:

encrypt.pl
---------------------------------------------
#!/usr/bin/perl

@palace_key = ( 55,197,96,114,205,165,11,6,209,249,203,60,87,12,13,27,121,30,45,114,180,4,179,96,178,128,221,137,160,237,242,132,124,250,196,153,159,39,237,222,108,222,30,184,72,52,100,41,118,165,1,134,33,11,191,176,153,237,32,45,117,66,76,106,192,117,126,137,51,0,101,130,3,4,147,61,87,74,170,47,165,213,116,189,215,49,218,131,150,226,24,89,238,32,83,36,61,136,171,119,74,153,185,4,225,211,157,208,137,191,137,68,50,100,199,46,147,51,213,107,41,149,187,59,130,150,61,96,38,208,132,91,69,90,139,76,90,60,91,138,88,148,184,155,19,219,107,190,26,10,96,115,116,85,231,89,176,186,68,118,172,226,133,22,196,16,83,151,56,192,238,168,6,66,169,27,189,210,151,226,221,37,218,165,68,199,32,81,58,251,146,148,23,113,47,2,85,96,150,181,38,76,87,247,139,70,120,25,226,182,96,143,208,247,148,105,4,45,197,65,210,64,131,137,103,199,238,245,93,167,137,49,215,146,82,87,216,167,16,246,211,20,138,18,118,127,26,226,23,213,177,255,126,130,216,50,179,137,29,178,68,106,120,175,15,35,249,100,122,59,122,19,33,80,134,128,7,71,152,188,132,36,110,224,171,132,222,220,1,32,237,3,2,153,163,47,158,137,103,3,105,197,165,46,18,177,84,95,211,54,249,128,220,55,95,35,105,178,203,57,153,123,233,89,99,40,9,5,182,146,170,69,121,84,212,227,45,107,108,90,167,41,231,108,102,149,64,201,45,206,51,57,85,102,202,126,209,122,192,32,64,9,78,41,179,222,9,205,153,174,251,24,173,115,213,126,186,2,91,143,92,163,249,169,43,242,99,222,152,47,38,153,40,202,190,239,119,114,174,200,93,41,114,108,42,24,59,139,161,21,172,30,93,9,72,125,221,44,171,138,7,228,74,164,107,150,17,136,205,156,48,21,207,85,18,241,130,76,4,36,236,168,174,210,28,46,28,18,66,154,232,32,100,92,191,222,232,244,229,76,119,228,81,176,38,218,167,134,243,16,180,134,232,14,121,145,78,222,117,123,213,209,215,170,22,189,91,3,165,49,56,147,51,102,242,14,111,16,168,216,53,149,80,45,161,63,253,6,9,144,134,204 );

sub palace_encrypt
{
local $lastchar = 0;
local $rc = 0;
local @bs;
for($i=length($_[0])-1; $i>=0; $i--) {
      local $b = ord(substr($_[0], $i, 1));
      $bs[$i] = $b ^ $palace_key[$rc++] ^ $lastchar;
      $lastchar = $bs[$i] ^ $palace_key[$rc++];
      }
return join("", map { chr($_) } @bs);
}

sub encode_escaped
{
local $str = $_[0];
$str =~ s/\\/\\\\/g;
$str =~ s/([^A-Za-z0-9\.\\])/sprintf("\\%2.2X", ord($1))/ge;
return $str;
}

print &encode_escaped(&palace_encrypt($ARGV[0]));

------------------------------------------------------------------------------

I am trying to use the encrypted output inside a shell script that will replace
OWNERPASSWORD "X"
with
OWNERPASSWORD "encyptedstring"

where encryptedstring is the return of &encode_escaped(&palace_encrypt($ARGV[0]))


The problem is that I try to run perl -e encrypt.pl owner and it doesnt seem to correctly work. I realize it might just be easier to do the whole thing in PERL, which is acceptable. But everything I read on search/replace in a file for PERL is all one-liners for the linux command line and not really for PERL script.