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Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $168,000, would be depreciated on a straight-line basis over its 4-year life, and would have a zero salvage value. The sales would be $90,300 a year, with variable costs of $27,450 and fixed costs of $12,050. In addition, the firm anticipates an additional $15,700 in revenue from its existing facilities if the putt putt course is added. The project will require $2,650 of net working capital, which is recoverable at the end of the project. What is the net present value of this project at a discount rate of 11 percent and a tax rate of 34 percent?
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jeff jeffy answered 1 year agoRelated Solutions
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $182,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $87,100 a year, with
variable costs of $28,150 and fixed costs of $12,750. In addition,
the firm anticipates an additional $21,300 in revenue from its
existing facilities if the putt putt course is added. The project
will require $3,350 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $170,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $78,400 a year, with
variable costs of $27,550 and fixed costs of $12,150. In addition,
the firm anticipates an additional $16,500 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,750 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $171,000, would be depreciated
on a straight-line basis over its 4-year life, and would have a
zero salvage value. The sales would be $97,400 a year, with
variable costs of $27,600 and fixed costs of $12,200. In addition,
the firm anticipates an additional $16,900 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,800 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $179,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $90,000 a year, with
variable costs of $28,000 and fixed costs of $12,600. In addition,
the firm anticipates an additional $20,100 in revenue from its
existing facilities if the putt putt course is added. The project
will require $3,200 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $167,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $84,000 a year, with
variable costs of $27,400 and fixed costs of $12,000. In addition,
the firm anticipates an additional $15,300 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,600 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $179,000, would be depreciated
on a straight-line basis over its 6-year life, and would have a
zero salvage value. The sales would be $90,000 a year, with
variable costs of $28,000 and fixed costs of $12,600. In addition,
the firm anticipates an additional $20,100 in revenue from its
existing facilities if the putt putt course is added. The project
will require $3,200 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $168,000, would be depreciated
on a straight-line basis over its 4-year life, and would have a
zero salvage value. The sales would be $90,300 a year, with
variable costs of $27,450 and fixed costs of $12,050. In addition,
the firm anticipates an additional $15,700 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,650 of...
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
Outdoor Sports is considering adding a putt putt golf course to
its facility. The course would cost $172,000, would be depreciated
on a straight-line basis over its 5-year life, and would have a
zero salvage value. The sales would be $86,500 a year, with
variable costs of $27,650 and fixed costs of $12,250. In addition,
the firm anticipates an additional $17,300 in revenue from its
existing facilities if the putt putt course is added. The project
will require $2,850 of...
7,Outdoor Sports is considering adding a putt putt golf course to its facility. The course would...
7,Outdoor Sports is considering adding a putt putt golf course
to its facility. The course would cost $171,000, would be
depreciated on a straight-line basis over its 4-year life, and
would have a zero salvage value. The sales would be $93,500 a year,
with variable costs of $28,050 and fixed costs of $12,650. In
addition, the firm anticipates an additional $20,500 in revenue
from its existing facilities if the putt putt course is added. The
project will require $3,250 of...
Valley Club is considering adding a miniature golf course to its facility. The course would cost...
Valley Club is considering adding a miniature golf course to its
facility. The course would cost $44,000, would be depreciated on a
straight-line basis over its 4-year life, and would have a zero
salvage value. The estimated income from the golfing fees would be
$33,000 a year with $9,000 of that amount being variable cost. The
fixed cost would be $6,200. The project will require $3,000 of net
working capital, which is recoverable at the end of the project.
What...
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