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Suppose we are asked to decide whether a new consumer product should be launched. Based on projected sales and costs, we expect that the cash

  1. Suppose we are asked to decide whether a new consumer product should be launched. Based on projected sales and costs, we expect that the cash flows over the five-year life of the project will be $3,000 in the first two years, $5,000 in the next two, and $6,000 in the last year. It will cost about $15,000 to begin production. We use a 11 percent discount rate to evaluate new products. What should we do here?

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