Grow Inc., a houseplant delivery company, has come up with a new product, the Office Bonsai

Tree. Grow paid $$100,000$ for a marketing survey to determine the viability of the product.

Research shows that Office Bonsai will generate sales of $$700,000$ per year. The fixed costs

associated with this will be $$180,000$ per year. Variable costs will amount to $20\%$ of sales. The

equipment necessary for the production of Office Bonsai will cost $$820,000$ and will be

depreciated straight line down to zero for the four years of the product life. This is the only

initial cost for the production. Grow is in a $25\%$ tax bracket and has a required rate of return of

$13\%.$ Calculate the cash flows for the project and the NPV$.$ Should Grow go ahead with the new

investment opportunity? Why or why not?