Casplan 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 groduction. It will cost $12.00 million fully installed and will be fully depreciated over a 20 year life. then removed for no oost. The RGM-7000 will result in additional revenues of $3.33 milion per year and increased operating costs of $520.518.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. If Caspian Sea Drinks uses a 11.00% discount rate. then the net present value of the RGM-7000 is