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Suppose a firm is considering introducing a new product. The cost of bringing the product to market is $6,750,000, and the firm expects first-year incremental

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Suppose a firm is considering introducing a new product. The cost of bringing the product to market is $6,750,000, and the firm expects first-year incremental free cash flows from the product to be $580,000 and to grow at 2% per year thereafter. The firm's WACC is 7%, but the greater riskiness of this project indicates an 11% discount rate would be more appropriate. Should it go ahead with the project? A) No, because the NPV of the project is -$580,000. B) Yes, because the NPV of the project is $1,535,714. C) No, because the NPV of the project is -$1,477,273. D) No, because the NPV of the project is -$305,556. E) Yes, because the NPV of the project is $4,850,000

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