1. Take Five Systems, a new start-up, is developing a new iPhone application (app) and provides you with the following assumptions:

   1. Development and testing of the new app will take four months. Month five is the first month of revenue generation.

   2. Initial monthly app sales of 5,000 downloads at a price of $2.99

   3. Unit sales will grow at 15% per month for months six through twelve and then will be flat thereafter

   4. The app will become obsolete and will need to be revised/replaced after month 18