Problem 9-20 Calculating Project Cash Flows and NPV ILO 2] Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $124,000 for a marketing survey to determine the viability of the product. It is felt that Potato percent of sales. The equipment necessary for production of the P (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 40 percent and a required return of 13 percent. Pet will generate sales of $579,000 per year. The fixed costs associated with this will be $183,000 per year, and variable costs will amount to 18 Pet will cost $828,000 and will be depreciated in a straight-ine manner for the four years of the product life Calculate the payback period for this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g, 32.16) Payback period Oyears Calculate the NPV for this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.32.16) NPVS Calculate the IRR for this project. (Do not round intermediate calculations and enter your answer as a percent IRR 18.90 % and Project Cash Flows Worksheet Problem 9-20 Calculating Project Cash Flows and NPV projects projected cash flows LO 21