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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 $22.00 million. The plant and equipment will be depreciated over 10 years to a book value of $2.00 million, and sold for that amount in year 10 . Net working capital will increase by $1.35 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.28 million per year and cost $2.03 million per year over the 10-year life of the projoct. Markoting estimates 15.0096 of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 23.00%. The WACC is 15.00\%. Find the NPV (net present value). 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 $28.00 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 . Net working capital will increase by $1.24 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.17 mallion per year and cost $1.76 million per year over the 10-year life of the project. Marketing estimates 16.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 31.00%. The WACC is 10.00%. Find the IRR (internal rate of return). Answer format: Porcentage Round to: 4 decimal places (Example: 9.2434%, \% sign required. Wil accept decimal format rounded to 6 decimal places (ex 0.092434))

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