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show the steps to the answers please Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines.

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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 18.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.00 million per year and increased operating costs of $647,110.00 per year. Caspian Sea Drinks' marginal tax rate is 28.00%. The incremental cash flows for produced by the RGM-7000 are 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 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.70 million per year and increased operating costs of $766,849.00 per year. Caspian Sea Drinks' marginal tax rate is 23.00%. The internal rate of return for the RGM- 7000 is

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