Question: PLEASE ONLY ANSWER IF YOU KNOW HOW WILL THUMBS UP THANKS! Caspian Sea Drinks is considering the purchase of a new water filtration system produced

PLEASE ONLY ANSWER IF YOU KNOW HOW WILL THUMBS UP THANKS!
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 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.00 million per year and increased operating costs of $586,303.00 per year. Caspian Sea Drinks' marginal tax rate is 30.00%. If Caspian Sea Drinks uses a 12.00% discount rate, then the net present value of the RGM-7000 isSubmitAnswer format: Currency: Round to: 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!