An e-commerce firm is developing a new application. Financial analysts have estimated the expenses and revenues over the next five years:

The company€™s discount rate is 8%. Compute the NPV and IRR for net profit and make a recommendation on whether or not to pursue the project. Then, use a data table to evaluate the impact of changing the initial investment in increments of $5,000 between $30,000 and $70,000. What might this mean with regard to the company€™s decision?

Month Development Expense Operating ExpenseRevenue Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 S- $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 S- $5,000.00 S15,000.00 S25,000.00 S50,000.00 S50,000.00 $50,000.00 $10,000.00 S- S- S- S-