a)

b)

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 $14.00 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.54 million per year and increased operating costs of $679,295 00 per year Caspian Sea Drinks marginal tax rate is 21.00% The intemal 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 0.0924341) Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Golutely 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 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.76 million per year and increased operating costs of $560,825.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00% If Caspian Sea Drinks uses a 9.00% discount rate, then the net present value of the RGM-7000 is Submit Answer format: Currency Round fo. 2 decimal places