Papa burger's has come up with a new product, the burger Pet (they are freeze-dried to last longer). Papas paid $135,000 for a marketing survey to determine the viability of the product. It is felt that burger Pet will generate sales of $850,000 per year. The fixed costs associated with this will be $210,000 per year, and variable costs will amount to 22 percent of sales. The equipment necessary for production of the burger Pet will cost $875,000 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. Papa's has a tax rate of 23 percent and a required return of 15 percent.

Calculate the Time 0 cash flow for this project.

Calculate the annual OCF for this project.

Calculate the payback period for this project.

Calculate the NPV for this project.

Calculate the IRR for this project.