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CellTech is proposing the launch of its new Cphone 5. The Cphone 5 will cost $6 million to develop and produce cash flows of $4.5

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CellTech is proposing the launch of its new Cphone 5. The Cphone 5 will cost $6 million to develop and produce cash flows of $4.5 million for three years. The release of the Cphone 5 is also expected to cannibalize sales of the Cphone 4 and reduce the cash flows from Cphone 4 by $2 million for the next two years. If CellTech's cost of capital is 15%, should it go ahead with the Cphone 5? Yes, the Cphone 5 has an NPV of $1,023,095.26 No, the Cphone 5 has an NPV of S-1.256,120.30 Yes, the Cohone 5 has an NPV of $1.256,120,30 No, the Cphone 5 has an NPV of $ 1.023,095.26 Yes, the Cohone 5 has an NPV of $1.210,780.00

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