Round answer to 2 decimal places.

Round answer to 2 decimal places.

Suppose that Coca-Cola decides introduce a new diet soft drink in the market. The product is expected to sell well but it will likely reduce the sales of some of their other products. Analysts expect that the other diet drinks that Coke sells will lose $15.00 million in sales per year. The after-tax operating margin on sales for Coke is 27.00%. What is the yearly side effect for introducing the new product? (Express as positive number and answer in terms of MILLIONS, so 1,000,000 would be 1.00) You are the owner of a small bar, The World, and you are considering opening a bakery in a vacant area in the back of the store. You estimate that it will cost you $51,463.00 to set up the bakery and that you will generate $10,620.00 in after-tax cash flows in for the life of the store (which is expected to be 10 years.) The one concern you have is that you have limited parking; by opening the bakery you run the risk of not having enough parking for customers who enjoy your bar. You estimate that the lost sales would amount to $4,473.00 per year and that your after-tax operating margin on sales at the bar is 55.00%. If your discount rate is 14.00%, what is the NPV of opening the bakery