Use the following information to answer the questions.

You are considering whether to launch a new product $($i$.$e$.,$ the project$)$ 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 $7\mathrm{.}5\%.$

ICE Question $1($a$).$ Either of the frameworks below can be used to determine whether undertaking the project will add value to the company. $($Worth $1$ point$)$

Project Value $(a.k.a.,$ Net Present Value$)={\displaystyle \underset{t=1}{\overset{n}{}}}\frac{\text{N}\text{e}\text{t}\text{C}\text{a}\text{s}\text{h}\text{F}\text{l}\text{o}\text{w}}{(1+\text{C}\text{o}\text{s}\text{t}of\text{C}\text{a}\text{p}\text{i}\text{t}\text{a}\text{l}{)}^i}-$ Initial Investment

ICE Answer $1($a$)$ True$/$False $$

ICE Question $1($b$).$ Support your Answer $1($a$)$ by explaining why below.