2) You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you are considering whether to launch a new product. The product, the Killer X3000, will cost $800,000 to develop up front (year 0 ), and you expect revenues the first year of $500,000, growing to $1.6 million the second year, and then declining by 30% per year for the next 3 years before the product is fully obsolete. In years 1 through 5 , you will have fixed costs associated with the product of $100,000 per year, and variable costs equal to 50% of revenues. a. What are the cash flows for the project in years 0 through 5? b. Calculate and plot (on a graph) the NPV for this investment at 0%,10%, 20%,30% and 40%. c. Estimate the project's IRR. 2) You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you are considering whether to launch a new product. The product, the Killer X3000, will cost $800,000 to develop up front (year 0 ), and you expect revenues the first year of $500,000, growing to $1.6 million the second year, and then declining by 30% per year for the next 3 years before the product is fully obsolete. In years 1 through 5 , you will have fixed costs associated with the product of $100,000 per year, and variable costs equal to 50% of revenues. a. What are the cash flows for the project in years 0 through 5? b. Calculate and plot (on a graph) the NPV for this investment at 0%,10%, 20%,30% and 40%. c. Estimate the project's IRR