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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 $24.00 million. The plant and equipment will be depreciated over 10 years to a book value of $3.00 million, and sold for that amount in year 10. Net working capital will increase by $1.49 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $8.81 million per year and cost $1.83 million per year over the 10-year life of the project. Marketing estimates 12.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 28.00%. The WACC is 14.00%. Find the NPV (net present value). Submit Answer format: Currency: Round to: 2 decimal places. 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 $22.00 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 your 10. Net working capital will increase by $1.08 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $8.86 million per year and cost $1.84 million per year over the 10-year life of the project. Marketing estimates 11.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 27.00%. The WACC is 14.00%. Find the IRR (internal rate of retum) Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434% sign required. Will accep decimal format rounded to 6 decimal places foc 0.092434)

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