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Casplan Sea Drinks is considering the purchase of a new water fittration system produced by Rube Goldberg Machines This new equlpment, the RGM-7000, will allow

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Casplan Sea Drinks is considering the purchase of a new water fittration system produced by Rube Goldberg Machines This new equlpment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 milion fully installed and wili be fully depreciated over a 15 year Ile, then removed for no cost. The RGM-7000 will result in additional revenues of $2.61 million per year and increased operating costs of $694,619.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. The internal rate of retum for the RGM-7000 is Answer format: Percentage Round to: 4 docimal places (Exampie: 9.2434%, \& sign reguired Wii accept decimal format rounded to 6 decimal pvaces (ex 0 092434))

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