Pappy's Potato has come up with a new product, the Potato Pet $($they are freeze$-$dried to

last longer$).$ Pappy's paid $$175,000$ for a marketing survey to determine the viability of

the product. It is felt that Potato Pet will generate sales of $$890,000$ per year. The fixed

costs associated with this will be $$226,000$ per year, and variable costs will amount to

$22$ percent of sales. The equipment necessary for production of the Potato Pet will cost

$$960,000$ 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 $21$ percent and a required return of $15$

percent.

Calculate the Time $0$ cash flow for this project. $($A negatlve onswer should be Indlcated

by a minus slgn$.$ Do not round Intermedlete calculatlons and round your answer to

the neorest whole number, e$.$g$.,32.)$

Time $0$ cash flow

Calculate the annual OCF for this project. $($Do not round Intermedlote colculatlons and

round your onswer to the neorest whole number, e$.$g$.,32.)$

OCF

Calculate the payback period for this project. $($Do not round Intermedlate colculations

and round your answer to $2$ declmal ploces, e$.$g$.,32\mathrm{.}16.)$

Calculate the NPV for this project. $($Do not round Intermedlete calculations and round

your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$