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Urgent thank you DrinksOnUs Inc. wants to expand its product offerings with a new non-alcoholic drink mix at a cost of $7.8 million. The drink
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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 8.5%, and pays a 30% corporate tax rate, what would be the NPV of this drink mix investment? O A) $308,880 A B) -$11,672 C) -$214,264 D) $92,880 E) -$114,033Step by Step Solution
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