Question: please help show work Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the

please help show work
please help show work Caspian Sea Drinks is considering the production of

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 $28.00 million. The plant and equipment will be depreciated over. 10 years to a book value of $2.00 million, and sold for that amount in year 10 . Net working capital will increase by $1.15 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.40 million per year and cost $1.75 million per year over the 10-year life of the project. Marketing estimates 18.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 21.00%. The WACC is 15.00%. Find the NPV (net present value). Answer format: Currency: Round to: 2 decimal places. 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 $28.00 million. The 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 . Net working capital will increase by $1,49 million at the beginning of the project and will be recovered at the end. The now diet drink will produce revenues of $9.01 millon per year and cost \$2.49 million per year over the 10-year life of the project. Marketing estimates 14.00\% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 20.00%. The WACC is 10.00%. Find the IRA (internal rate of return). Answer format: Percentage Round to: 4 decimal places (Example: 2.2434%,% sign required. Wir accept decimal format rounded to 6 decimal places (ex: 0.092434 ) )

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