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show how to slove with excel 2. Calculating Project Cash Flows and NPV Pappy's Potato has come up with a new product, the Potato Pet
show how to slove with excel
2. Calculating Project Cash Flows and NPV Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid \\( \\$ 120,000 \\) for a marketing 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 \\( \\$ 890,000 \\) 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. The tax rate is 23 percent and the required return is 13 percent. Calculate the payback period, NPV, and IRR Step by Step Solution
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