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 15.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.79 million per year and increased operating costs of $632,017.00 per year. Caspian Sea Drinks' marginal tax rate is 29.00%. 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 $3.08 million per year and increased operating costs of $770,783.00 per year. Caspian Sea Drinks' marginal tax rate is 30.00%. The internal rate of return for the RGM-7000 is Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equippent, 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 $3.25 million per year and increased operating costs of $537.718.00 per year. Caspian Sea Drinks' marginal tax rate is 25.00%. If Caspian Sea Drinks uses a 10.00% 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 68.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay, 5.63% coupon Gonds which sell for 98.98% of par. Their stock currently has a market value of $24.73 and Mr. Bensen believes the market estimates that dividends will grow at 3.98% forever. Next year's dividend is projected to be $2.39. Assuming a marginal tax rate of 35.00%, 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: 0.09243)
