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Rock Inc. is planning to invest in the development of a new product which will take 5 years to develop and will cost $250,000 per year during the development stage. Thereafter, the new product is expected to generate cash flows of 350,000 per year for 12 years. The cost of capital is estimated to be 8%. Is this investment worth undertaking?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92100099

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