Your case study firm is considering whether to invest $5.8million in year 0 to develop an IOT router for which they expect sales diring 1-5 years

a. examine the net present value for a new product investment at a 10% rate given that the firm expects annual sales revenues equal 5 times 1715000 and profit nargin 25%

b. critically examine the sensitivity of the project to sales erosion of (10%,20% and 30%) using the NPV (for the same 10% discount rate)

c. Using the original sales revenue, increase the discount rate till you achieve a negative NPV and use this to establish the project IRR. Discuss how this result may be viewed by senior staff responsible for project approvals.