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Casplan 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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Casplan 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 milion 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 $1.23 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $872 milion per year and cost \$2.39 millon per year over the 10-year ife of the project. Marketing estimates 14.00% of the buyers of the diet drink will be people who will switch from the tegular drink. The marginal tax rate is 34.00%. The WACC is 15.00%. Find the NPV (net present value)

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