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 19.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.79 million per year and increased operating costs of $772,000.00 per year. Caspian Sea Drinks' marginal tax rate is 28.00%. The incremental cash flows for produced by the RGM-7000 are _____. (ROUND TO 4 DECIMAL PLACES)
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 19.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.79 million per year and increased operating costs of $772,000.00 per year. Caspian Sea Drinks' marginal tax rate is 28.00%. The incremental cash flows for produced by the RGM-7000 are _____. (ROUND TO 4 DECIMAL PLACES)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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
(ROUND TO 4 DECIMAL PLACES)
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