22.Caspian Sea Drinks is considering the purchase of a new water f.docx - 22 Caspian Sea Drinks is considering the purchase of a new water filtration

22.Caspian Sea Drinks is considering the purchase of a new water f.docx

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22. 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 19.00 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 $748,168.00 per year. Caspian Sea Drinks' marginal tax rate is 25.00%. The incremental cash flows for produced by the RGM-7000 are _____. Answer format: Currency: Round to: 2 decimal places. #2 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 $2.87 million per year and increased operating costs of $740,726.00 per year. Caspian Sea Drinks' marginal tax rate is 23.00%. The internal rate of
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  • Fall '17
  • Bob Maxwell

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