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You are CEO of Fret Netwonks, makar of utra-high perfomance nework cands for gaming computirs, and you are censidaring whether to lanch a new product.
You are CEO of Fret Netwonks, makar of utra-high perfomance nework cands for gaming computirs, and you are censidaring whether to lanch a new product. The protuct, the KCller X380D, will cost 5900,080 w dsvalsp up frent (year 0), and you sepect rewsuss the frst ysar of 5800,000 , growing to 81.50 milion the second year, and then deciring by 40% paryear for the nent 3 yeass before the produat is fally obsolato. In years 1 through 5 you will have fired costs atasociated wath the product of 5100,000 par yoar, and vallable coass oq-al to 50% of eswsnuss. 3. What are the cash flows for the project in years 0 through 6 ? b. Fiot the NPV profile for this investment using discount rates from 0% to 40% in 10% increments. c. What is the projects NPV in the projects cost of capitsl is 10% ? d. Use the NPW profle to estimste the cost of espisal at which the project would become unprofisble; that is, estimate the project's IRR. a. What ane the cash flows for the project in years 0 through 5 ? Caloulste the cash fows below: (Round to the nesrest deliar)
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