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 18.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.15 million per year and increased operating costs of $600,614.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. The incremental cash flows for produced by the RGM-7000 are _____.

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 $2.96 million per year and increased operating costs of $757,366.00 per year. Caspian Sea Drinks' marginal tax rate is 35.00%. 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 $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 $3.88 million per year and increased operating costs of $616,436.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. If Caspian Sea Drinks uses a 8.00% discount rate, then the net present value of the RGM-7000 is _____.

Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.74% coupon bonds which sell for 97.69% of par. Their stock currently has a market value of $25.38 and Mr. Bensen believes the market estimates that dividends will grow at 3.80% forever. Next years dividend is projected to be $2.21. Assuming a marginal tax rate of 27.00%, what is their WACC (weighted average cost of capital)?