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$$ X$3000,$ will cost $$$$910$ comma $000$ to develop up front$($year $0),$ and you expect revenues the first year of $$$$808$ comma $000,$ growing to $$$$1\mathrm{.}54$ million the second$$ year, and then declining by $45\%$ 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 $$$$102$ comma $000$ per$$ year, and variable costs equal to $55\%$ 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 $9\mathrm{.}5\%?$

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.