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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 $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 $3.77 million per year and increased operating costs of $546,808.00 per year. Caspian Sea Drinks' marginal tax rate is 35.00%. If Caspian Sea Drinks uses a 8.00% discount rate, then the net present value of the RGM-7000 is Submit Answer format: Currency Round to 2 decimal places Caspian Sea Drinks is financed with 67.00% equity and the remainder in debt. They have 10,00-year semi-annual pay. 5.74% coupon bonds which sell for 97 52% of par. Their stock currently has a market value of $25.92 and Mr Bensen believes the market estimates that dividends will grow at 3.19% forever. Next year's dividend is projected to be $2.78 Assuming a marginal tax rate of 27.00%, what is their WACC (weighted average cost of capital Submit Answer format: Percentage Round to 2 decimal places (Example 9.24% % sign required will accept decimal format rounded to 4 decimal places (ex: 0.0924))

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