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Show your work please. Thank you. #2 Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines.
Show your work please. Thank you.
#2 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 $13.00 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 $3.38 million per year and increased operating costs of $669,772.00 per year. Caspian Sea Drinks' marginal tax rate is 22.00%. The internal rate of return for the RGM- 7000 is Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434) unanswered not_submitted Attempts Remaining: Infinity Step by Step Solution
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