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 $525,000 per year. The fixed costs associated with this will be $178,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pets will cost $540,000 and will be depreciated in a straight line manner for the four years of the product life. This is the only initial cost for the production. Pappy’s is in a 40 percent tax bracket and has a required return of 13 percent. Calculate the payback period, NPV, and IRR.