) A company is introducing a new product that they think will have a 10-year...
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) A company is introducing a new product that they think will have a 10-year life cycle, with sales increasing steadily for 5 years, after which sales will decline steadily. The company feels that the product will be so successful that they will make sales every day of the year. As a result, they model future sales by assuming net cash flows are received continuously over the 10-year horizon at the following rates; 100t, for 0?t?5 100(10-t), for 5
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