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 18.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.05 million per year and increased operating costs of $776,746.00 per year. Caspian Sea Drinks' marginal tax rate is 30.00%. The incremental cash flows for produced by the RGM-7000 are _____.

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 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.51 million per year and increased operating costs of $600,093.00 per year. Caspian Sea Drinks' marginal tax rate is 26.00%. The internal rate of return for the RGM-7000 is _____.

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 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.71 million per year and increased operating costs of $608,239.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. If Caspian Sea Drinks uses a 12.00% discount rate, then the net present value of the RGM-7000 is _____.

Caspian Sea Drinks' is financed with 61.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.23% coupon bonds which sell for 98.10% of par. Their stock currently has a market value of $25.27 and Mr. Bensen believes the market estimates that dividends will grow at 3.11% forever. Next years dividend is projected to be $2.95. Assuming a marginal tax rate of 22.00%, what is their WACC (weighted average cost of capital)?