# 35 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...


# 35<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 $15.00 million fully installed and will be fully<br>depreciated over a 20 year life, then removed for no<br>cost. The RGM-7000 will result in additional revenues of<br>$2.98 million per year and increased operating costs of<br>$579,459.00 per year. Caspian Sea Drinks' marginal tax<br>rate is 20.00%. If Caspian Sea Drinks uses a 9.00%<br>discount rate, then the net present value of the RGM-<br>7000 is<br>Submit<br>Answer format: Currency: Round to: 2 decimal places.<br>unanswered<br>not_submitted<br>Attempts Remaining: Infinity<br>

Extracted text: # 35 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 $2.98 million per year and increased operating costs of $579,459.00 per year. Caspian Sea Drinks' marginal tax rate is 20.00%. If Caspian Sea Drinks uses a 9.00% discount rate, then the net present value of the RGM- 7000 is Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity

Jun 08, 2022
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