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the first photo is the problem, the second and third photo is what i have to input the answers to, please let me know if
the first photo is the problem, the second and third photo is what i have to input the answers to, please let me know if there is anything i can do better to help solve this
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 $900,000 to develop up front (y ear 0), and you expect revenues the first year of $800,000, growing to $1.50 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 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. 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 10% ? 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) 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 the project's IRR. Calculate the cash flows below: (Round to the nearest dollar) YOY growth Variable costs % of sales Fixed costs Investment Total cash flows (900,000) (900,000) Step by Step Solution
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