You are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, and you are oonsidering 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 dec nng by 40% per year for the next 3 years before the product is fully obsolete In years 1 trough 5, you will have fixed costs associated with the product of S98,000 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 projects 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.) OS 796,000 Revenues YOY growth Variable costs % of sales Fixed costs Investment Total cash flows 55% (900,000) (900,000) Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check