Pappy's Potato has come up with a new product; the Potato Pet (they are freeze-dried to last longer):

Pappy's paid120,000 for a marketing survey to survey to determine the viability of the product: It is felt that Potato Pet will generate sales of 915,000 per year: The fixed costs associated with this will be $235,000 per year; and variable costs will amount to 20 percent of sales: The equipment necessary for production of the Potato Pet will cost S890,000 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 23 percent and required return of 13 percent: a. Calculate the payback period, NPV, and IRR for this project: "