Question: please show all steps for all problems PS 31 - graded Due: Friday, April 15, 2022, at 11:59:59 PM EDT View List Unanswered Answered Caspian



PS 31 - graded Due: Friday, April 15, 2022, at 11:59:59 PM EDT View List Unanswered Answered 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 $12.00 million fully Installed and will be fully depreciated over a 20.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.20 million per year and increased operating costs of $734,403.00 per year. Caspian Sea Drinks' marginal tax rate is 26.00%. The incremental cash flows for produced by the RGM-7000 are Submit Answer format: Currency: Round to: 2 decimal places. 62 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 $3.31 million per year and increased operating costs of $744,020.00 per year. Caspian Sea Drinks' marginal tax rate is 31.00%. 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 formut rounded to 6 decimal places (ex: 0.092434)) 23 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 $12.00 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 $2.95 million per year and increased operating costs of $613,756.00 per year. Caspian Sea Drinks marginal tax rate is 21.00%. 11 Caspian Sea Drinks uses a 10.00% 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 69.00% equity and the remainder in debt. They have 10.00-year, semi-annual pay. 5.55% coupon bonds which sell for 98.78% of par. Their stock currently has a market value of $24.42 and Mr. Bensen believes the market estimates that dividends will grow at 3.08% forever. Next year's dividend is projected to be $2.73 Assuming a marginal tax rate of 27.00%, what is their WACC (weighted average cost of capital? At Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, sign required. Wil compt decimal format rounded to decimal places (0.0924)
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