Question
2. Coca-Cola is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Coca-Cola
2. Coca-Cola is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Coca-Cola to expand production. It will cost $12 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.1 million per year and increased operating costs of $746,989 per year. Coca-Cola's marginal tax rate is 20%. The internal rate of return for the RGM-7000 is _____. Percentage Round to: 4 decimal places (Example: 2.2847%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))
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