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Answer all and show steps please! 82 O Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg
Answer all and show steps please!
82 O 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 dopreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $277 million per year and increased operating costs of $764,888.00 per year Caspian Sea Drinks' marginal tax rate is 24.00% The intomat rate of roturn for the RGM-7000 is Submit Answer format: Porcontage Round to 4 decimal places (Example 9 2434%, % sign required. Wil accept decimal format rounded to 6 decimal places (ox 0.092434)) W3 O 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. Tho RGM-7000 will result in additional revenues of $2 02 million per year and increased operating costs of $651,60700 per year Caspian Sea Drinks' marginal tax rate is 33.00%. 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 o Caspian Sea Dnnks is financed with 60.00% equity and the remainder in debt. They have 11.00 year, semi-annual pay. 5 12% coupon bonds which sell for 98 20% of par Their stock currently has a market value of $25.12 and Mr Bensen believes the market estimates that dividends will grow at 3 64% forever. Next year's dividend is projected to be $2.77 Assuming a marginal tax rate of 24.00%, what is their WACC (weighted average cost of capital? Submit Answer format: Porcentage Round to 2 decimal places (Example 9 2496% sign required Will accept decimal format rounded to 4 decimal places (ex: 0 0924)) Step by Step Solution
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