You are CEO of Rivet Networks, maker of ultra-high performance aetwork cards for gaming computers, and you are considering whether to leunch a new product. The product, the Killer X3000, will cos $900,000 to develop upfront (year 0), and you expect revenues the first year of S800,000, pewng to $1.5 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 asociated with the product of $100,000 per year, and variable costs equal to 50% of revenues Complete the steps below using cell references to given data or previous calculations, In some cases, a simple cell reference in all you need. To copy/paste a formula acros a row or down a column, an absolute cell neference or a mixed cell reference may be preferred. Ifa specific Excel function is to be wsed, the directions will specify the use of that function. Do not ppe in aumerical data into a cell or function, Iastead, make a neference to the cell in which the data is found. Make your compulations only in the blue cells highlighted below. In all cases, unless othernise directed, use the earfiest appearance of the data in your formulas usually the Given Data section .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 50% in 5% increments. c. what is the project's NPV ifthe project's cost of capital is 10%? 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 or calculate it using the data. Initial investment Revenses year 1 Revenses year 2 Revenses decline years 3-5 Fixed costs years 1-5 900 800,000 00,000 50% Variable costs a. What are the cash flows for the project in years 0 through 5? Year Revenues Variable costs Fixed costs Total cash flow b. 0t the NPV profile for this investment using discount rates from 0% to 50% in 5% increments Cost of Capital 0% NPV million) Martinez Berk DeMarzo Harfo Home Insert Page Layout FormulasData Review View L' Wrap Text Gene Times New Roman 14AAE D Copy Merge & CenterS Format Blyv b-Pot be NPV profile for this investment using dmaat rates from 0% to SO% in S% inereness Cost of Capital 5% 10% 15% NPV (million) 30% 35% 40% 45% . What is the project's NPV ifthe project's cost of capital is 10%, NPV (at 10% cost of capital) e cost of capital at which the project would become unprofitable, that is, calculate the IRR d. Use the NPV profile to estimate from the data Calculated IRR Requiremeats In cell range D20:120, by using cell references, calculate the revenues of the project for years 0.5, respectively Note: For year 0, type D (acro) for Revenues. (6 pt.)