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finance. need all answered Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment,
finance. need all answered
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 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.82 million per year and increased operating costs of $524,369.00 per year, Caspian Sea Drinks' marginal tax rate is 33.00\%. If Caspian Sea Drinks uses a 12.00\% discount rate, then the net present value of the RGM-7000 is 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 $14.00milli, fully installed and will be fully depreciated over a 19.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.96 million per year and increased operating costs of $680,345.00 per year. Caspian Sea Drinks' marginal tax rate is 29.00%. 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 $15.00 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 $2.67 million per year and increased operating costs of $743,736.00 per yeac. Caspian Sea Drinks' marginal tax rate is 26.00%. The internal rate of return for the RGM-7000 is Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%,% sign required. Wir accept decinal format rounded to 6 decimal places (ex:0.092434) Step by Step Solution
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