Facts: Developer Cardly sells e-cards via its FB platform application, Cardlys eCards, for $5 per card Users on FB platform are 10MM at EOY 2022 and expected to grow 10% each year thereafter Cardlys traffic is 10% of FB platform users at EOY 2022 and expected to grow 5% each year thereafter Cardlys conversion (rate of purchase) is 0.5% of Cardly traffic Cardlys only costs are server operations of $10K per year plus $0.01 per card sold and payment fees via Paypal of 5% of card sales revenue Cardly pays no taxes, and its cost of capital is 15% Questions: (a) Please give a concise picture of Cardlys financial operations for the next 5 years (2023-2027). If continuing operations for the next 5 years requires a $62K upfront investment, would you recommend that they continue operating or not? (b) Facebook decides to offer a competing payments product that charges 10% per card sold. How much increased conversion does Cardly need to experience in order to switch from using PayPal to FB Payments? (c) In order to improve its performance, Cardly decides to run an ad campaign on FB for its cards. Assuming each ad click has a 50% likelihood of leading to a purchase, what Cost Per Click should Cardly be willing to pay? Please note that (c) is independent of (b).