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525 Caspian Sea Drinks is considering the production of a diet drink The expansion of the plant and the purchase of Be equipment necessary to
525 Caspian Sea Drinks is considering the production of a diet drink The expansion of the plant and the purchase of Be equipment necessary to produce the diet drink will cost $25.00 milion The plant and equipment will be depreciated over 10 years to a book value of 53 00 milion, and sold for that amount in year 10 Net Working capital will increase by $1.01 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $8 92 million per year and cost 51 59 million per year over the 10-year ite of the project Marketing estimates 14.00% of the buyers of the diet drink will be people who wil switch from the regular drink The marginat tax rate is 32.00%. The WACC is 11.00% Find the NPV (net present value) Atte Subm Answer format: Currency Round to 2 decimal places
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