# 34 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...


# 34<br>Caspian Sea Drinks is considering the purchase of a<br>new water filtration system produced by Rube Goldberg<br>Machines. This new equipment, the RGM-7000, will<br>allow Caspian Sea Drinks to expand production. It will<br>cost $14.00 million fully installed and will be fully<br>depreciated over a 15 year life, then removed for no<br>cost. The RGM-7000 will result in additional revenues of<br>$3.10 million per year and increased operating costs of<br>$714,187.00 per year. Caspian Sea Drinks' marginal tax<br>rate is 32.00%. The internal rate of return for the RGM-<br>7000 is<br>Submit<br>Answer format: Percentage Round to: 4 decimal places<br>(Example: 9.2434%, % sign required. Will accept<br>decimal format rounded to 6 decimal places (ex:<br>0.092434))<br>unanswered<br>not_submitted<br>Attempts Remaining: Infinity<br>

Extracted text: # 34 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 $3.10 million per year and increased operating costs of $714,187.00 per year. Caspian Sea Drinks' marginal tax rate is 32.00%. 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)) unanswered not_submitted Attempts Remaining: Infinity

Jun 08, 2022
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