Each of your puzzles are made by Package Right in Tipton, Indiana. The puzzle, box, and outer sleeve cost $5.78 per puzzle to manufacture. Shipping to your headquarters located in Washington will cost $0.35 per puzzle. Your new puzzle headquarters will be located in Oregon and consist of offices and a small warehouse space for order fulfillment. In total your new headquarters will cost $2,300,000.

You will also need to invest $1,200,000 in inventory to be ready to go live.

In a recent presentation to investors, you projected sales of 50,000 puzzles in year one, followed by annual growth of 32% in year two and year three and 15% in year four and five.

At the end of year five, it is likely you will be able to sell the company for $2,100,000.

The government two year bond is trading at 1.6% while the five year bond trades at 3.2%. Last year, the US equity markets rose by 8.5% which was the same as it has been for the last five years. Other toy companies that trade in public markets have a beta of approximately 1.2.

You recently borrowed $1,200,000 from the bank at 5.5% for ten years. Your puzzle company has no preferred stock but its equity was raised by issuing common stock at $35 per share with a 7% flotation cost on a base of 100,000 shares.

Calculate your puzzle companys NPV, IRR, and Payback Period.