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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 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 20.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.69 million per year and increased operating costs of $769,373.00 per year. Caspian Sea Drinks' marginal tax rate is 33.00%. The incremental cash flows for produced by the RGM-7000 are ___. : 4 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 $15.00 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 $3.38 million per year and increased operating costs of $668,768.00 per year. Caspian Sea Drinks' marginal tax rate is 26.00%. The internal rate of return for the RGM-7000 is _ : 4 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 $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 $3.43 million per year and increased operating costs of $618,373.00 per year. Caspian Sea Drinks' marginal tax rate is 22.00%. If Caspian Sea Drinks uses a 10.00% discount rate, then the net present value of the RGM-7000 is ___ : 4 decimal places

Caspian Sea Drinks' is financed with 65.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.73% coupon bonds which sell for 97.60% of par. Their stock currently has a market value of $24.76 and Mr. Bensen believes the market estimates that dividends will grow at 3.74% forever. Next years dividend is projected to be $2.27. Assuming a marginal tax rate of 23.00%, what is their WACC (weighted average cost of capital)? : 4 decimal places

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