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 $897,000 to develop up front (year O), and you expect revenues the first year of $805,000, growing to $1.45 million the second year, and then declining by 35% 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 $95.000 per year, and variable costs equal to 55% of revenues. a. What are the cash flows for the project in years 0 through 5? b. Plot the NPV profile for this investment using discount rates from 0% to 40% in 10% increments. c. What is the project's NPV if the project's cost of capital is 10.6%? d. Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; that is, estimate the project's IRR. a. What are the cash flows for the project in years 0 through 5? Calculate the cash flows below: (Round to the nearest dollar.) 0 0$ Revenues YOY growth 1 2 805,000 $ 1,450,000 80.1% (35%) (35%) (35%) Variable costs % of sales 55% 55% 55% 55% 559 Fixed costs Investment (897,000) (897,000) Total cash flows b. Plot the NPV profile for this investment using discount rates from 0% to 40% in 10% increments. The graph depicting the correct NPV profile is: (Select the best choice below.) . NPV Profile NPV Profile 700.000 700,000 OOS 500,000 500.000 300,000 300,000 NPV (S) 100,000+ 2100,000 $ 10 15 20 30 35 40 -100.000- 5 -100,000 10 20 25 30 35 40 -300,000/ -300,000 Discount Rate (%) Discount Rate (%) c. What is the project's NPV if the project's cost of capital is 10.6%? The NPV is $ . (Round to the nearest dollar.) 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. (For a zoom in on the NPV profile, click here .) Based on the NPV profile, the approximate internal rate of return is %. (Round to the nearest Integer.)