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A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firms production process more efficient which in turn increases incremental cash flows. The GSU-3300 produces incremental cash flows of $25,638.00 per year for 8 years and costs $99,762.00. The UGA-3000 produces incremental cash flows of $27,753.00 per year for 9 years and cost $126,778.00. The firms WACC is 9.54%. What is the equivalent annual annuity of the GSU-3300? Assume that there are no taxes.

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 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.61 million per year and increased operating costs of $630,876.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. The internal rate of return for the RGM-7000 is _____.

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 17.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.81 million per year and increased operating costs of $676,651.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. The incremental cash flows for produced by the RGM-7000 are _____.

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