Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...

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Caspian Sea Drinks is considering the purchase of a new waterfiltration system produced by Rube Goldberg Machines. This newequipment, the RGM-7000, will allow Caspian Sea Drinks to expandproduction. It will cost $14.00 million fully installed and will befully depreciated over a 20 year life, then removed for no cost.The RGM-7000 will result in additional revenues of $2.75 millionper year and increased operating costs of $634,267.00 per year.Caspian Sea Drinks' marginal tax rate is 20.00%. If Caspian SeaDrinks uses a 8.00% discount rate, then the net present value ofthe RGM-7000 is _____. Answer Format: Currency: Round to: 2 decimalplaces.

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Caspian Sea Drinks is considering the purchase of a new waterfiltration system produced by Rube Goldberg Machines. This newequipment, the RGM-7000, will allow Caspian Sea Drinks to expandproduction. It will cost $14.00 million fully installed and will befully depreciated over a 20 year life, then removed for no cost.The RGM-7000 will result in additional revenues of $2.75 millionper year and increased operating costs of $634,267.00 per year.Caspian Sea Drinks' marginal tax rate is 20.00%. If Caspian SeaDrinks uses a 8.00% discount rate, then the net present value ofthe RGM-7000 is _____. Answer Format: Currency: Round to: 2 decimalplaces.