So you want to start a puzzle company. Of course it's a Disney puzale company. You plan to launch your products during the upcoming flu season while everyone is hunkered down in their homes, hopefully putting together your puzzles. Each of your puzzles are made by Package Right in Tipton, Indiana. The puzzle, box, and outer sleeve cost $5.78 per puzzle to manufacture. Shipping to your headquarters in Utah will cost $0.35 per puzzle. Your new puzzle headquarters will be in Mapleton, Utah and consist of offices and a small warehouse space for order fulfillment. In total your new headquarters will cost $2,300,000. Your new beadquarters will be fully depreciated over the five-year project. Each puzcle is expected to sell for $24.99 and customers cover all shipping costs. The company has a tax rate of 23%. You will also need to invest $1,200,000 in inventory to be ready to go live. In a recent presentation to investors, you projected sales of 50,000 purales in year one, followed by annual growth of 32% in year two and year three and 15% in year four and five. At the end of year five, it is likely you will be able to sell the company for $2,100,000. The government two year bond is trading at 1.6% while the five year bond trades at 3.2%. Last year, the US equity markets rose by 8.5% which was the same as it has been for the last five years. Other toy companies that trade in public markets have a beta of approximately 1.2. You recently borrowed $1,200,000 from the bank at 5.5% for ten years. Your purzle company has no preferred stock but its equity was raised by issuing common stock at 535 per share with a 7% flotation cost on a base of 100,000 shares. Calculate your puzzle company's NPV, IRR, and Payback Period. A spreadsheet has been created for your analysis, which you can download from Canvas. A similar spreadsheet, with the solutions, can also be downloaded from Canvas after you have made your own valiant effort. So you want to start a puzzle company. Of course it's a Disney puzale company. You plan to launch your products during the upcoming flu season while everyone is hunkered down in their homes, hopefully putting together your puzzles. Each of your puzzles are made by Package Right in Tipton, Indiana. The puzzle, box, and outer sleeve cost $5.78 per puzzle to manufacture. Shipping to your headquarters in Utah will cost $0.35 per puzzle. Your new puzzle headquarters will be in Mapleton, Utah and consist of offices and a small warehouse space for order fulfillment. In total your new headquarters will cost $2,300,000. Your new beadquarters will be fully depreciated over the five-year project. Each puzcle is expected to sell for $24.99 and customers cover all shipping costs. The company has a tax rate of 23%. You will also need to invest $1,200,000 in inventory to be ready to go live. In a recent presentation to investors, you projected sales of 50,000 purales in year one, followed by annual growth of 32% in year two and year three and 15% in year four and five. At the end of year five, it is likely you will be able to sell the company for $2,100,000. The government two year bond is trading at 1.6% while the five year bond trades at 3.2%. Last year, the US equity markets rose by 8.5% which was the same as it has been for the last five years. Other toy companies that trade in public markets have a beta of approximately 1.2. You recently borrowed $1,200,000 from the bank at 5.5% for ten years. Your purzle company has no preferred stock but its equity was raised by issuing common stock at 535 per share with a 7% flotation cost on a base of 100,000 shares. Calculate your puzzle company's NPV, IRR, and Payback Period. A spreadsheet has been created for your analysis, which you can download from Canvas. A similar spreadsheet, with the solutions, can also be downloaded from Canvas after you have made your own valiant effort