Question: Please help with the following question. The final graph is supposed to downward sloping. You are CEO of Rivet Networks, maker of ultra-high performance network

Please help with the following question. The final graph is supposed to downward sloping.Please help with the following question. The final graph is supposed todownward sloping. You are CEO of Rivet Networks, maker of ultra-high performance

You are 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 cost $900,000 to develop up front (year 0), and you expect revenues the first year of $800,000, growing 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 associated with the product of $100,000 per year, and variable costs equal to 50% of revenues. What are the cash flows for the project in years 0 through 5? Plot the NPV profile for this investment from 0% to 40% in 10% increments. what is the project's NPV if the project's cost of capital is 10%? Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; a. b. C. d. that is, estimate the project's IRR. Rivet Networks Cost of Capital 0 1 Revenues oy growth Variable Costs % sales Fixed Costs Investment Total Cash Flow Discount Factor PV NPV IRR #NUM! Discount rate 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% NPV Profile 0 0 0% 1096 2096 3096 4096 5096 60% 706 8096

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