Question
In: Finance
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.19 million per year and increased operating costs of $751,841.00 per year. Caspian Sea Drinks' marginal tax rate is 34.00%. The internal rate of return for the RGM-7000 is _____.
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))
answer should be in 4 decimal places.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $3.25 million
per year and increased operating costs of $620,226.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 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 $790,526.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 15 year life, then removed for no cost.
The RGM-7000 will result in additional revenues of $2.81 million
per year and increased operating costs of $794,637.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $3.89 million
per year and increased operating costs of $518,515.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $2.99 million
per year and increased operating costs of $670,270.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $3.16 million
per year and increased operating costs of $696,012.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 20 year life, then removed for no cost.
The RGM-7000 will result in additional revenues of $3.25 million
per year and increased operating costs of $561,639.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $3.61 million
per year and increased operating costs of $573,240.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $3.83 million
per year and increased operating costs of $563,402.00 per year.
Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
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 $3.87 million
per year and increased operating costs of $585,710.00 per year.
Caspian Sea Drinks' marginal tax rate is...
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