Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and
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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 $ million. The plant and equipment will be depreciated over years to a book value of $ million, and sold for that amount in year Net working capital will increase by $ million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $ million per year and cost $ million per year over the year life of the project. Marketing estimates of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is The WACC is Find the IRR internal rate of return
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