20. Sleeman Brewery is considering adding a new line of craft beers to its product...
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20. Sleeman Brewery is considering adding a new line of craft beers to its product mix. The new beer will require additional brewing and bottling capacity at a cost of $35 million. The new line of craft beer is expected to generate new sales of $20 million per year and free cash flow of $10 million for the next 5 years. After 5 years, competition is expected to reduce sales and cash flows to Nil. If the brewery has a cost of capital of 10%, what is the Net Present Value (NPV) of this investment for Sleeman
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