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Anheuser-Busch is considering introducing a new ginger beer line for the holidays and provides the following data about this potential project. If the total project
Anheuser-Busch is considering introducing a new ginger beer line for the holidays and provides the following data about this potential project. If the total project life is 20 years and the company MARR is 13%, what is the NPV of this project? Initial Investment Annual Operating Cost Annual Marketing Cost Years 1-8 Net Contribution Margin Years 1-10 $25,000,000 $1,500,000 Starts in Year 1 $2,500,000 Decreases by 5% per year beginning $8,500,000 Decreases by 10% per year beginning in year 11 year 9
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