Question: You are warking at Peak. Processes, which is considering adding a new product lino. You thought that you had estimated the completn FCFa flreo each

 You are warking at Peak. Processes, which is considering adding a

You are warking at Peak. Processes, which is considering adding a new product lino. You thought that you had estimated the completn FCFa flreo each flown) to eviluate the project, but your assiatant has brought up possible elfects thut you had not yot considered. Here are your current estmates (in milians of dollars; note that the question is coertinued below, so yoe need to acroll Everyting that you have caloulated is correct as far as it goes, but you neod to docide how, if at all, to odjust for the following factons fhat your assistant has peinted out projeot). Or, a second athervetive is that the equipment coild instead be sold for an afiectax berefit of 53 milison (in dollars lodoyl. Second, some of the beinefits of this new product line would be from oustomens swiching from your eaiding products. This eronion or carnbalization would hive a nat (antler tae) aftect of 35 milion por year lost from other products, dver the two years you would be producing the new peoduct. The fint reievant poriods FCF is: The second reievant periods FCF is The third relevant periods FCF; If any is

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