A company is contemplating to launch a new product. From the details provide below suggest if the company should launch the product. Market research conducted 128,000 Pr Additional information: - Cost of sales is 30% of sales value. - Fixed costs (all incremental) per annum - 100,000. - Depreciation of production equipment is 20% per annum on reducing balance with salvage value of 100,000 at the end of year 5 . - The above products cash flows are at current year's (year 0) selling prices and costs. Inflation is expected to affect all cash flows at 5% year on year. - The production equipment qualifies for tax relief at 25% per annum on reducing balance. - Assume that the corporation tax rate is 30% for the five years. - The real cost of capital is 12% Hint: exclude market research cost as it is sunk cost