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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 necessary 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 necessary to produce the diet drink will cost $26.00 million. The plant and equipment will be depreciated over 10 years to a book value of $200 million, and sold for that amount in year 10. Net working capital will increase by $1 41 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.21 million per year and cost $2 41 million per year over the 10-year life of the project Marketing estimates 1200% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 32.00%. The WACC is 14.00% Find the NPV (net present value). Submit Answer format: Currency Round to: 2 decimal places

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