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Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce

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Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $27.00 million. The plant and equipment will be depreciated over 10 years to a book value of $1.00 million and sold for that amount in year 10. Not working capital will increase by $1.28 million at the beginning of the project and will be recovered at the end. The new die drink will produce revenues of $9.09 million per year and cost $2.00 milion per year over the 10 years of the project. Marketing estimate 17.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 3000%. The WACC is 15.00%. Find the NPV int presente Answer format Currency: Pound to: 2 acima places

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