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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 nossary 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 nossary to produce the distdrink will cost $22.00 million. The plant and equipment will be depreciated over 10 years to book value of $2.00 million and sold for that amount in year 10. Not working capital will increase by $1.16 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of 82 million per year and cost $2.14 million per year over the 10 year ite of the project Marketing states 11.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 20.00. The WACCS 15.00%. Find the internal rate of return

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