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this a mulit part question it follows cheggs rules Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube
this a mulit part question it follows cheggs rules
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 18.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.63 million per year and increased operating costs of $691,840.00 per year. Caspian Sea Drinks' marginal tax rate is 26.00%. 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 $14.00 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 $2.76 million per year and increased operating costs of $601,915.00 per year. Caspian Sea Drinks' marginal tax rate is 24.00%. The internal rate of return for the RGM-7000 is _____.
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 $2.97 million per year and increased operating costs of $589,751.00 per year. Caspian Sea Drinks' marginal tax rate is 29.00%. If Caspian Sea Drinks uses a 10.00% discount rate, then the net present value of the RGM-7000 is
Caspian Sea Drinks' is financed with 60.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.89% coupon bonds which sell for 98.00% of par. Their stock currently has a market value of $25.64 and Mr. Bensen believes the market estimates that dividends will grow at 3.33% forever. Next years dividend is projected to be $2.80. Assuming a marginal tax rate of 31.00%, what is their WACC (weighted average cost of capital)?
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