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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 $2300 million The plant and equipment will be depreciated over 10 years to a book value of si o million, and sold for that amount in year 10 Net working capital will increase by $1 39 million at the beginning of the project and will be recovered at the end The new diet drink will produce avenues of $8 57 million per year and cost $2.02 million per year over the 10-year life of the project Marketing estimates 1600% of the buyers of the diet drink will be people who will swich from the regular drink. The marginal tax rate is 33 00% The WACC is 1400% Find the IRR (internal rate of return) AIN Subnut Answer format: Percentage Round to 4 decimal places (Example 92434% % sign roqued. W accept decimal format rounded to 6 decimal places (ex 0092434))

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