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You wre CEO of Rivet Networks, maker of ultra-High performance network cards for gaming computers, and you are considering whether to launch a new product.

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You wre 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 oost $892,000 to develop up front (yoar O), and you expect r nos the frst yoar of S802,0 .growing bS1 41milo tese ond year, and th n dodiring by 45% per y arfrihenext 3 yo ars before the product is fully obsolete. In years 1 through 5, you will have fxed costs associated with the product of $98,000 per year, and variable costs equal to 50%ofmenes. .What are the cash flows for the project in years O through 5 b.Plot te NPV prlie for tis investment using aount nates torn 0% to 40% in 10% iaromonts. c, what is iha priors NPV ifthe projod's cost of oagdal is 9.8%? d. Use the NPV profile to estimate the oost of capital at which the project would become unprofitable; that is, estimate the project's a. Sta . What aro the cash flows for the prjectinynars Othro s? Calculate the cash flows below: (Round to the nearest dollar) os 802,000 1,410,000 758% YOY growth Variable costs %Of sales Fxnd costs (45%) (45%) (45%) WN 1) Total cash Bows b.pot te NPV prohlefor this rvestrment usngdsourt ratest n 0% to 40% in 10% raemeres. Enter any number in the edit fields and then continue to the next question Save for Later 9 MacBook Air 888s 2 3 4 aps lock You wre 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 oost $892,000 to develop up front (yoar O), and you expect r nos the frst yoar of S802,0 .growing bS1 41milo tese ond year, and th n dodiring by 45% per y arfrihenext 3 yo ars before the product is fully obsolete. In years 1 through 5, you will have fxed costs associated with the product of $98,000 per year, and variable costs equal to 50%ofmenes. .What are the cash flows for the project in years O through 5 b.Plot te NPV prlie for tis investment using aount nates torn 0% to 40% in 10% iaromonts. c, what is iha priors NPV ifthe projod's cost of oagdal is 9.8%? d. Use the NPV profile to estimate the oost of capital at which the project would become unprofitable; that is, estimate the project's a. Sta . What aro the cash flows for the prjectinynars Othro s? Calculate the cash flows below: (Round to the nearest dollar) os 802,000 1,410,000 758% YOY growth Variable costs %Of sales Fxnd costs (45%) (45%) (45%) WN 1) Total cash Bows b.pot te NPV prohlefor this rvestrment usngdsourt ratest n 0% to 40% in 10% raemeres. Enter any number in the edit fields and then continue to the next question Save for Later 9 MacBook Air 888s 2 3 4 aps lock

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