PLEASE ANSWER BY FILLING OUT EXCEL SHEET FULLY! You manage a software company specializing in mobile game development and are considering launching a new adventure role$-$playing game called $$Battle Craft.$$ The plan is to market and sell the game for a span of $5$ years before competitors potentially replicate its features. Based on market research costing $$35,000$ last year, projections suggest potential sales of $100,000$ copies in the first year at $$50$ per copy, with the annual cost of goods sold estimated at $$20$ per copy. Each subsequent year, the number of copies sold is expected to decline by $10\%$ from the previous year. An immediate capital investment of $$1,000,000$ is required for new servers and their installation, which will be depreciated straight$-$line to $$0$ over $5$ years. Net working capital will rise by $$450,000$ initially, maintaining this level in year one, but will decrease by $$250,000$ in year $2$ and by another $$200,000$ in year $5,$ returning to its original level. Introducing "Battle Craft" may decrease revenue from other role$-$playing games from your company by $$600,000$ annually. Expanding the marketing team will increase annual salaries by $$275,000.$ If $$Battle Craft$$ isn$$t developed, the software engineers could work on another project, potentially yielding $$500,000$ in profit each year. The project$$s cost of capital is $15\%,$ and the company$$s marginal tax rate is $25\%.$

$1,$ Determine the project$$s net present value and IRR. Given the circumstances, would you recommend pursuing this project?

$2.$ What would be the break$-$even price per copy sold, i$.$e$.,$ the price that would result in an NPV of $$0?$

$3.$ With the aforementioned $10\%$ annual decline in sales, how many copies should you sell in the first year to break even?

$4.$ What would be the break$-$even side effect?