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Find the internal rate of return

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Question - 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 $2.59 million per year and increased operating costs of $637,137.00 per year. Caspian Sea Drinks' marginal tax rate is 21.00%. Find the internal rate of return for the RGM-7000?

Reference no: EM132805441

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