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Casplan Sea Drinks is considoring the purchase of a new water filtration system produced by Rube Goidberg Machines. This new equipment, the RGM-7000, will allow

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Casplan Sea Drinks is considoring the purchase of a new water filtration system produced by Rube Goidberg 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 R.GM-7000 will result in additional revenues of $318 million per year and increased operating costs of $665,266.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. The intemal rate of return for the RGM-7000 is Answer fomat: Percentage Round to: 4 decimal places (Example: 9.2434%,% sign required. Wili accept decimal fomat rounded to 6 . decimal places (ex. 0.092434) )

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