Question: Please answer all and show the steps! #2 Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg
#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 $15.00 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 $279 million per year and increased operating costs of $678,352 00 per year Caspian Sea Drinks' marginal tax rate is 25.00% The internal rate of return for the RGM-7000 is Submit Answer format: Porcentage Round to 4 decimal places (Example 9 2434%, % sign required Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) 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 20 year life then removed for no cost. The RGM-7000 will result in additional revenues of S2 99 million per year and increased operating costs of $648,380 00 per year. Caspian Sea Drinks marginal tax rate is 30.00% 1 Caspian Sea Drinks uses a 12.00% discount rato, then the not present value of the RGM-7000 is Submit Answer format: Currency Round fo 2 decimal places #4 Caspian Sea Drinks' is financed with 68.00% equity and the romainder in debt. They have 10.00-year, semi-annual pay, 5 31% coupon bonds which sell for 97 46% of par. Their stock currently has a market value of $25.43 and Mr. Bensen believes the market estimates that dividends will grow at 3 95% forever Next year's dividend is projected to be $2.21 Assuming a marginal tax rate of 29 00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round fo. 2 decimal places (Example 9.24%, % sgn roquired Will accept decimal format rounded to 4 decimal places (ex 0 0924)
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