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 year 0 and you expect revenues the first year of $796,000, growing to $1.51 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 $98,000 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 9.7%? 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 57 Calculate the cash flows below: (Round to the nearest dollar.) 0 $ 796,000 S,510,000 89.7% YOY growth Variable costs % of sales Fixed costs (437,800) 55%, (98,000) 55% (900,000) Total cash flows (900,000 260,200 Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check