Question
Calculating Project cash flow and NPV :pappy's potato has come up with a new product, the potato pet ( they are freeze-driedto last longer) pappy's
Calculating Project cash flow and NPV:pappy's potato has come up with a new product, the potato pet ( they are freeze-driedto last longer) pappy's paid $120,000 for the marketing survey to determine the viability of the product. It is felt that potato pet will generate sales of $835,000 per year. The fixed cost associated with this will be $204,000 per year.And variable cost will amount to 20 percent of sales. The equipment necessary for production of the Potato Pet will cost$865,000 and will be depreciated in a straight line manner for the four years of the product life. This is the only initial cost for the production. Pappy's has tax rate of 23 percent and a required return of 13 percent. Calculate the payback period, NPV and IRR? Pls solve using calculator TI- 84 or 83 if you can. My professor not allowed using Excel
Thank you for your time and help
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