Question: Answer format: Currency: Round to: 2 decimal places, B Casplan Son Drinks is considering the production of a diet drink. The expansion of the plant

 Answer format: Currency: Round to: 2 decimal places, B Casplan Son

Answer format: Currency: Round to: 2 decimal places, B Casplan Son 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 $23.00 million he plant and equipment will be depreciated over 10 years to a book value of $3.00 million, and sold for that amount in year 10. Not working capital will increase by $1.03 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of 89.28 million per year and cost $1.56 million per year over the 10-year life of the project, Marketing estimates 19.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 34.00%. The WACC in 12.00%. Find the IRR (internal rate of return). Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (exc: 0.092434))

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