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 $2.87 million per year and increased operating costs of $790,526.00 per year. Caspian Sea Drinks' marginal tax rate is 21.00%. The internal rate of return for the RGM-7000 is _____.
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 $3.19 million
per year and increased operating costs of $751,841.00 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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The Coronavirus will obviously impact the economy of big organizations like FIFA or the NBA but...
- Question: what is the difference between rights of assertion and observation assertion. Include which financial statements...
- how to read a csv file in php and make a html table? I can't use...
- ABC Inc. is evaluating a project that will increase annual sales by $230,000 and annual cash...
- Identify the behavior, values, and consumption patterns from people in New York City versus Milan Italy.
- A stock has a required return of 10%, the risk-free rate is 4.5%, and the market...
- How do the media options available to advertisers vary in different parts of the world? (Choose...
ADVERTISEMENT