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 $815,000 per year. The fixed costs associated with this will be $196,000 per year, and variable costs will amount to 20 percent of sales. the equipment necessary for production of the potato pet will cost $865,000 and will be depreciated in a straight line manner for the 4 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 has a tax rate of 40 percent and a required return of 13 percent. Calculate the payback period, NPV, and IRR.
pappy's potato has come up with a new product the potato pet (they are freeze dried...
pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $150,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $865,000 per year. The fixed costs associated with this will be $216,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pet will cost $910,000 and will...
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $160.000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $875.000 per year. The fixed costs associated with this will be $220.000 per year, and variable costs will amount to 24 percent of sales. The equipment necessary for production of the Potato Pet will cost $930,000 and will...
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $185,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $900,000 per year. The fixed costs associated with this will be $230,000 per year, and variable costs will amount to 18 percent of sales. The equipment necessary for production of the Potato Pet will cost $980,000 and will...
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...
Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $205,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $920,000 per year. The fixed costs associated with this will be $238,000 per year, and variable costs will amount to 18 percent of sales. The equipment necessary for production of the Potato Pet will cost $1,020,000 and will...
Pappy's Potato has come up with a new product, the'Potato Pet (they are freeze-dried to last longer). Pappy's paid $210,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $925,000 per year. The fixed costs associated with this will be $240,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pet will cost $1,030,000 and will be...
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $195,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $910,000 per year. The fixed costs associated with this will be $234,000 per year, and variable costs will amount to 22 percent of sales. The equipment necessary for production of the Potato Pet will cost $1,000,000 and will...
Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $220,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $935,000 per year. The fixed costs associated with this will be $244,000 per year, and variable costs will amount to 24 percent of sales. The equipment necessary for production of the Potato Pet will cost $950,000 and will...
Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $130,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $845,000 per year. The fixed costs associated with this will be $208,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pet will cost $870,000 and will...
Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $190,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $905,000 per year. The fixed costs associated with this will be $232,000 per year, and variable costs will amount to 20 percent of sales. The equipment necessary for production of the Potato Pet will cost $990,000 and will...