The investment environment and the soda market in mexico

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1. What are the background of the investment environment and the soda market in Mexico?

2. What are the relevant cash flows?

3. Discuss whether other relevant cash flows (i.e., sunk cost, financing cost, opportunity cost, and externality) should be included or not in your analysis (e.g., should we consider the erosion of the existing product- the regular sodas-in the analysis? Why or why not?)

4. Calculate the project’s NPV, IRR, and payback period.

5. Perform sensitivity analyses on sales volume, price, direct labor, materials, and energy cost. What do you observe?

6. Should Sangria Topochico undertake this project?

Reference no: EM132056356

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