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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 $73.00 ilion. The plant and equipment will be depreciated over 10 years to a book value of $2.00 mition, and sold for that amount in year 10. Net working capital will increase by $1.14 million at the beginning of the project and will be recovered at me end. The new det drink will produce revenues of $9.29 million per year and cost $1.60 million per year over the 10. year of the project Marketing states 19.00% of the buyers of the diet drunk will be people who will switch from the regular drink. The marginal tax rate is 3500M. The WACC is 10.00%. Find the NPV int present Value

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