(SMC) has been successfully producing and selling various types of equipment for the last 20 years and is considering adding a new product, a designer desk lamp, to its existing product line. The firm would have to spend $2,360,000 now to launch the new product, which is expected to be obsolete after five years. The investment is expected to generate an annual net cash flow of $832,000 at the end of its first year, $822,000 at the end of its second year, $692,000 at the end of its third year, $554,000 at the end of its fourth year, and a terminal net cash flow of $466,000 at the end of its fifth year. The terminal cash flow includes the estimated resale value of any equipment used to manufacture the product, net of any liquidation cost. The projects estimated cost of capital is 7.6 percent. Should SMC launch the new product?