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marketing survey to determine the viability of the product, it is felt that Potato Pet wil generate sales of $885,000 per year. The foxed costs

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marketing survey to determine the viability of the product, it is felt that Potato Pet wil generate sales of $885,000 per year. The foxed costs assoclated with this witt be $224,000 per year, and varlable costs witl amount to 20 percent of sales. The equipment necessary for production of the Potato Pet wil cost $950,000 and will be depreciated in a straight-line manner for the four years of the product life (as with all fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy's has a tax rate of 25 percent and a required return of 14 percent Calculate the Time 0 cash fiow for this project. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.9. 32

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