Question: PLEASE if you dont want to answer 3 questions do not answer I have limit questions left THANK YOU Caspian Sea Drinks is considering the
PLEASE if you dont want to answer 3 questions do not answer I have limit questions left THANK YOU
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 $2.52 million per year and increased operating costs of $799,401.00 per year. Caspian Sea Drinks' marginal tax rate is 20.00%. 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)) 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 $3.59 million per year and increased operating costs of $550,634.00 per year. Caspian Sea Drinks' marginal tax rate is 21.00%. If Caspian Sea Drinks uses a 8.00% discount rate, then the net present value of the RGM-7000 is Submit Answer format: Currency: Round to: 2 decimal places. Caspian Sea Drinks' is financed with 70.00% equity and the remainder in debt. They have 12.00-year, semi-annual pay, 5.33% coupon bonds which sell for 97.46% of par. Their stock currently has a market value of $25.20 and Mr. Bensen believes the market estimates that dividends will grow at 3.86% forever. Next year's dividend is projected to be $2.22. Assuming a marginal tax rate of 31.00%, what is their WACC (weighted average cost of capital)? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) unanswered not submitted Attempts Remaining: Infinity unanswered not submitted Attempts Remaining: Infinity unanswered not_submitted Attempts Remaining: Infinity
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