Question: You are considering whether to launch a new product and want to determine the financial feasibility. If you undertake the project, it will cost $10
You are considering whether to launch a new product and want to determine the financial feasibility. If you undertake the project, it will cost $10 million to launch and the new product will generate annual revenue of $5, $4, $3 and $1 million during the first four years. You will finance the project with debt and equity and our cost of capital for the project is 10%. From a financial perspective only, will this project add value to your company?
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