core: 0 of 1 pt 18 of 30 (2 complete) HW Score: 6.67%, 2 of 30 pts 8-13 (similar to) Question Help 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 $890,000 to develop up front (year 0), and you expect revenues the first year of $807,000, growing to $1.46 million the second year, and then declining by 45% 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 $108,000 per year, and variable costs equal to 45% of revenues a. What are the cash flows for the project in years 0 through 5 b. Plot the NPV profile for this investment using discount rates from 0% to 40% in 10% increments C. What is the project's NPV if the project's cost of capital is 9.1%? d. Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; that is, estimate the project's IRR. a. What are the cash flows for the project in years 0 through 5 Calculate the cash flows below: (Round to the nearest dollar.) Revenues YOY growth Variable costs % of sales Fixed costs Investment Total cash flows O $807,000 45% (890,000) (890,000)