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please help asap Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the
please help asap
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 $2.76 million per year and increased operating costs of $671,890.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. 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 financed with 63.00% equity and the remainder in debt. They have 12.00 -year, semi-annual pay, 5.90% coupon bonds which sell for 97.13% of par. Their stock currently has a market value of $24.42 and Mr. Bensen believes the market estimates that dividends will grow at 3.60\% forever. Next year's dividend is projected to be \$2.21. Assuming a marginal tax rate of 28.00%, what is their WACC (weighted average cost of capital) Step by Step Solution
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