#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 $13.00 million fully installed and will be fully depreciated over a 20 year life, then removed for no cost. The RGM- 7000 will result in additional revenues of $3.26 million per year and increased operating costs of $631,365.00 per year. Caspian Sea Drinks' marginal tax rate is 26.00%. If Caspian Sea Drinks uses a 12.00% discount rate, then the net present value of the RGM-7000 is Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity #4 Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.36% coupon bonds which sell for 97.08% of par. Their stock currently has a market value of $25.33 and Mr. Bensen believes the market estimates that dividends will grow at 3.04% forever. Next year's dividend is projected to be $2.48. Assuming a marginal tax rate of 33.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not_submitted Attempts Remaining: Infinity