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thank you for the help in advancd Caspian Sea Drinks is considering the purchase of a new water fitration system produced by Rube Goidberg Machines.

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Caspian Sea Drinks is considering the purchase of a new water fitration system produced by Rube Goidberg 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 $2.62 million per year and increased operating costs of $502,287.00 per yoar. Caspian Sea Drinks' marginal tax rate is 22.00%. If Casplan Sea Drinks uses a 9.00% 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 62.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.69% coupon bonds which sell for 98.65% of par. Their stock currently has a market value of $24.20 and Mr. Bensen belleves the market estimates that dividends will grow at 3.06% forever. Next year's dividend is projected to be $2.90. Assurning a marginal tax rate of 22.00%, what is their WACC (woighted average cost of capital)? Answer format: Percentage Round to: 2 decimal piaces (Example: 9.24%,% sign nequired. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) )

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