MCR is currently considering launching a new, stateoftheart computer table that comes packed with attractive features. The company executives have traveled to different cities to understand what the demand of the product will be and the company has spent $ on those travel expenses. The company expects the product to have a lifespan of years, and anticipates generating $ million in annual operating revenue, with operating costs set at of this figure. However, to begin production, MCR needs to procure a new machine that costs $ and is subject to a CCA Capital Cost Allowance rate. It is expected that the machine will be sold for $ at the end of the project\'s life.

MCR will require an immediate infusion of $ in net working capital when the project begins, and this amount will remain constant throughout the project\'s duration. The company expects to recover of its net working capital investment at the end of the project. In addition, a consulting team has been appointed to conduct a study on the product\'s demand potential. The consulting team will only be paid the consulting fee of $ if MCR decides to undertake the project, and they will receive payment at the beginning of the project.

MCR relies solely on bonds and common stocks to fund its operations, with a debttoequity ratio of which equates to debt and equity. The bonds issued by MCR are currently trading at par, offering a annual coupon rate, and are set to mature in years. MCR has a beta of while the current market risk premium is and the current riskfree rate is The company\'s tax rate is

Should the company launch this product? Use NPV Net Present Value approach to justify your decision.