ct the Killer Lab d. How far UIT LUUIU OPCIJAJCUJE ULU decision would change? 8. You are CEO of Rivet Networks, maker of ultra-high performance network cards for gam computers, and you are considering whether to launch a new product. The product, the X3000, will cost $900,000 to develop upfront (year 0), and you expect revenues the first y $800,000, growing to $1.5 million the second year, and then declining by 40% per year fo next 3 years before the product is fully obsolete. In years 1 through 5, you will have fixed associated with the product of $100,000 per year, and variable costs equal to 50% of rey 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 increments. c. What is the project's NPV if the project's cost of capital is 10%? d. Use the NPV profile to estimate the cost of capital at which the project would becom unprofitable; that is, estimate the project's IRR. the first year of er year for the ave fixed costs % of revenues