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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

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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 20 year life, then removed for no cost. The AGM7000 will result in additional revenues of $4.00 million per year and increased operating costs of $680,221,00 per year. Caspian Sea Drinks' marginal tax rate is 28.00\%. If Caspian Sea Drinks uses a 12.00\% discount rate, then the net present value of the AGM-7000 is Answer format: Cumency: Round fo: 2 decimal places. 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 19.00 year life, then removed for no cost. The PGM-7000 will result in additional revenues of $2.73 million per year and increased operating costs of $637,899.00 per year, Caspian Sea Drinks' marginal tax rate is 25,00%. The incremental cash flows for produced by the AGM-7000 are Answer format: Currency: Round to: 2 decimal places

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