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can someone please do all three i am very desperate Caspian Sea Drinks is considering the purchase of a new water filtration system produced by
can someone please do all three i am very desperate
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 $3.04 million per year and increased operating costs of $672,032.00 per year. Caspian Sea Drinks' marginal tax rate is 33.00%. The internal rate of return for the RGM- 7000 is Answer format: Percentage Round to: 4 decimal places (Example: 9.2434\%, \% sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434) ) 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 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.22 million per year and increased operating costs of $682,061.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. If Caspian Sea Drinks uses a 10.00% discount rate, then the net present value of the RGM-7000 is Answer format: Currency: Round to: 2 decimal places. Caspian Sea Drinks' is financed with 69.00% equity and the remainder in debt. They have 11.00-year, semi-annual pay, 5.89% coupon bonds which sell for 97.12% of par. Their stock currently has a market value of $25.38 and Mr. Bensen believes the market estimates that dividends will grow at 3.36% forever. Next year's dividend is projected to be $2.83. Assuming a marginal tax rate of 35.00%, what is their WACC (weighted average cost of capital)Step by Step Solution
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