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

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

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

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

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

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

Use the data provided to forecast Take Five's monthly revenue for Months 1-18

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