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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 15.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.54 million per year and increased operating costs of $749,405.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. 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 $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 $665,011.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. The internal rate of return for the RGM-7000 is _____.

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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 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 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.86 million per year and increased operating costs of $680,594.00 per year. Caspian Sea Drinks' marginal tax rate is 32.00%. If Caspian Sea Drinks uses a 11.00% discount rate, then the net present value of the RGM-7000 is _____.

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

Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.59% coupon bonds which sell for 97.42% of par. Their stock currently has a market value of $24.69 and Mr. Bensen believes the market estimates that dividends will grow at 3.60% forever. Next years dividend is projected to be $2.78. Assuming a marginal tax rate of 26.00%, what is their WACC (weighted average cost of capital)?

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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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