Sparking Water, Inc., expects to sell 2.86 million bottles of drinking water each year in perpetuity.This year each bottle will sell for $1.55 in real terms and will cost $.96 in real terms.Sales income and costs occur at year-end.Revenues will rise at a real rate of 5 percent annually, while real costs will rise at a real rate of 4 percent annually.The real discount rate is 14 percent.The corporate tax rate is 35 percent.

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