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Please solve ASAP! I will leave a thumbs up!! DrinksOnUs Inc. wants to expand its product offerings with a new non-alcoholic drink mix at a
Please solve ASAP! I will leave a thumbs up!!
DrinksOnUs Inc. wants to expand its product offerings with a new non-alcoholic drink mix at a cost of $7.8 million. The drink mix is expected to bring incremental pre-tax sales of $2.75 million per year for the next 5 years. If the firm has a cost of capital of 6%, and pays a 30% corporate tax rate, what would be the NPV of this drink mix investment? OA) -$11,672 B) $92,880 C) -$214,264 D) $308,880 OE) -$114,033 Step by Step Solution
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