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Caspian Sea Drinks is considering the purchase of a new water fitration 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 fitration 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 17.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3 26 million per year and increased operating costs of $648,743.00 per year. Caspian Sea Drinks' marginal tax rate is 2400%. The incremental cash flows for produced by the RGM-7000 are Submit Answer format: Currency Round to: 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 $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 $3 29 million per year and increased operating costs of $660,932.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. The internal rate of return for the RGM-7000 is Sub Answer format: Percentage Round to 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex 0092434)) 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 yoarife, then removed for no cost The RGM-7000 will result in additional revenues of $3 08 million per year and increased operating costs of $537,879.00 per year. C tax rate is 24.00% If Caspian Sea Drinks uses a 12.00% discount rate, then the not present value of the RGM-7000 is Submit Answer format: Currency. Round to: 2 decimal places Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 10.00 year, semi-annual pay. 5.16% coupon bonds which soll for 97 45% of par. Their stock currently has a market value of $24.01 and Mr. Bensen believes the market estimates that dividends will grow at 3.05% forever. Next year's dividend is projected to be $2.88 Assuming a marginal tax rate of 34.00%, what is their WACC (weighted average cost of capital)

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