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# 1 Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM

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Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $15.00 million fully installed and will be fully depreciated over a 17.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.36 million per year and increased operating costs of $629,314.00 per year. Caspian Sea Drinks' marginal tax rate is 28.00%. The incremental cash flows for produced by the RGM-7000 are
Answer format: Currency: Round to: 2 decimal places.
Correct Answer: $2,213,152.74
Points: 0
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