Question
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 18.00 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 $670,956.00 per year. Caspian Sea Drinks' marginal tax rate is 35.00%. The incremental cash flows for produced by the RGM-7000 are _____.
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 $14.00 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 $2.91 million per year and increased operating costs of $741,724.00 per year. Caspian Sea Drinks' marginal tax rate is 29.00%. The internal rate of return for the RGM-7000 is _____.
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))
I would really appreciate the Help!! :) would be great if you could all steps (not excel) for better understanding~ Thank You
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