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A soda producer is considering adding a new soda to its product mix. The new juice will require a capital expenditure of $15 million. This
A soda producer is considering adding a new soda to its product mix. The new juice will require a capital expenditure of $15 million. This investment is expected to generate annual incremental cash flows of $5 million for the next 5 years (i.e., year 1 to year 5). If the juice producer has a cost of capital of 6%, what is the NPV of this investment?
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