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Pappy's Potato has come up with a new product, the Potato Pet ( they are freeze - dried to last longer ) . Pappy's paid
Pappy's Potato has come up with a new product, the Potato Pet they are freezedried to last longer Pappy's paid $ for a
marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $ per year. The fixed
costs associated with this will be $ per year, and variable costs will amount to percent of sales. The equipment necessary
for production of the Potato Pet will cost $ and will be depreciated in a straightline 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
percent and a required return of percent.
Calculate the Time cash flow 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, eg
Time cash flow
Calculate the annual OCF for this project.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, egCalculate the payback period for this project.
Note: Do not round intermediate calculations and round your answer to decimal places, eg
Calculate the NPV for this project.
Note: Do not round intermediate calculations and round your answer to decimal places, eg
NPV
Calculate the IRR for this project.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
IRR
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