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#2 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

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#2 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 15 year life, then removed for no cost. The RGM-7000 will result in additiona revenues of $2.85 million per year and increased operating costs of $600,563.00 per year. Caspian Sea Drinks' marginal tax rate is 23.00%. The internal rate of return for the RGM-7000 is Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) #3 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 $12.00 million fully installed and will be fully depreciated over a 20 year life, then removed for no cost. The RGM-7000 will result in additiona revenues of $3.60 million per year and increased operating costs of $511,536.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. If Caspian Sea Drinks uses a 11.00% discount rate, then the net present value of the RGM-7000 is Submit Answer format: Currency: Round to: 2 decimal places. #4 Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.93% coupon bonds which sell for 98.33% of par. Their stock currently has a market value of $25.14 and Mr. Bensen believes the market estimates that dividends will grow at 3.75% forever. Next year's dividend is projected to be $2.39. Assuming a marginal tax rate of 23.00%, what is their WACC (weighted average cost of capital)? Submit

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