Attempts Remaining: Infinity 24 Caspian Sea Drinks is considering the production of a diet drink....
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Attempts Remaining: Infinity 24 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 $24.00 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 $1.29 million at the beginning of the project and will be recovered at the end. The new diet drink will produce revenues of $9.19 million per year and cost $1.92 million per year over the 10-year Wife of the project. Marketing estimates 11.00% of the buyers of the diet drink will be people who will switch from the regular drink. The marginal tax rate is 23.00%. The WACC is 10.00%. Find the IRR (internal rate of return). 10 11 12 213 15 16 17 18 19 20 21 22 Submit W
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