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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 will allow Caspian Sea Drinks to expand production. It will cost $ million fully installed and will be fully depreciated over a year life, then removed for no cost The RGM will result in additional revenues of $ million per year and increased operating costs of $ per year. Caspian Sea Drinks' marginal tax rate is The incremental cash flows for produced by the RGM are
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Correct Answer: $
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