Use the following information to answer the questions.

You are considering whether to launch a new product and want to determine the financial feasibility. If you

undertake the project, you will initially need to invest $$15$ million in up$-$front capital on the first day to

launch the project. From operating the project, the project is expected to generate end$-$of$-$first$-$year net cash

flow of $$3$ million, growing $11\mathrm{.}5\%$ annually for the next four years end$-$of$-$year net cash flow $($i$.$e$.,$ from end$-$

of$-$years $2$ through $5).$ You will finance the project with a combination of debt and equity and your weighted

average cost to finance the initial capital is $7\mathrm{.}5\%.$

Question $1.$ From a financial feasibility perspective only, should the company accept or reject this project? $($Worth $3$

point$)$

Question $2$: From a financial feasibility perspective only, provide the full quantitative detail and full qualitative

reasoning to support why the company should accept or reject this project? $($Worth $7$ points$)$