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please help with the rest of the problems You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you

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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 $907,000 to develop up front (year O), and you expect revenues the first year of $804,000, growing to $1.48 million the second year, and then declining by 40% per year for the next 3 years before the product is fully obsolete. In years 1 through 5, you will have foxed costs associated with the product of $108,000 per year, and variable costs equal to 50% of revenues. a. What are the cash flows for the project in years 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 11%? 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. Calculate the cash flows below: (Round to the nearest dollar.) 0 4 2 804,000 $ 1,480,000 $ 3 888,000 OS (40%) Revenues YOY growth Variable costs % of sales Fixed costs (402,000) 84.1% (740,000) 50% (40%) (444,000) 50% (108,000) 50% (108,000) 50% 108000 (108,000) Investment (907.000) (907,000) Total cash flows 294,000 632.000 336.000 Enter any number in the edit fields and then click Check

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