5- A cereal nutrition company is evaluating whether a new high-performance breakfast cereal should be added to its product line. A preliminary feasibility analysis indicated that the company would need to invest S15.5 million in a new manufacturing facility to produce and package the product. A financial analysis using sales and cost data supplied by marketing and production personnel indicated that the net cash flow (cash inflows minus cash outflows) would be S5.2 million in the first year or commercialization, S6.4 million in second year, $7.00 million in third year, and S4.5 million in year 4. Senior company executives were undecided whether to move forward with the development of the new product. They requested that a discounted cash flow analysis be performed using a 20 percent discount rate: (15 pointsy) Should the company proceed with development of the product if the discount rate is 20 percent? Why