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 20 year life, then removed for no cost The RGM 7000 will result in additional revenues of $3 41 million per year and increased operating costs of $649,689 00 per year Caspian Sea Drinks' marginal tax rate is 24 00 If Caspian Sea Drinks uses a 12 00 discount rate, then the net present value of the RGM 7000 is Answer format Currency Round to 2 decimal places 2) Caspian Sea Drinks' is financed with 70 00 equity and the remainder in debt They have 12 00 year, semi annual pay, 5 64 coupon bonds which sell for 97 14 of par Their stock currently has a market value of $25 20 and Mr Bensen believes the market estimates that dividends will grow at 3 99 forever Next years dividend is projected to be $2 49 Assuming a marginal tax rate of 33 00 , what is their WACC (weighted average cost of capital) 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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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 $15.00 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 $3.41 million per year and increased operating costs of $649,689.00 per year. Caspian Sea Drinks' marginal tax rate is 24.00%. If Caspian Sea Drinks uses a 12.00% discount rate, then the net present value of the RGM-7000 is _____.

Answer format: Currency: Round to: 2 decimal places.

2) Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.64% coupon bonds which sell for 97.14% of par. Their stock currently has a market value of $25.20 and Mr. Bensen believes the market estimates that dividends will grow at 3.99% forever. Next years dividend is projected to be $2.49. Assuming a marginal tax rate of 33.00%, what is their WACC (weighted average cost of capital)?

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))