A B C D E 1 The following information pertains to Fairways Driving Range, Inc.: 2 a ball dispensing machine, a ball pick-up vehicle, and a tractor and accessories for a total cost of 3 The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will need to purcha 4 $ 74,637.00 5 All of this depreciable equipment will be immediately fully depreciated using bonus depreciation 6 7 The project is expected to operate for 6 years, at the end of which the equipment will be sold for 40% of its original cost Fairways expects to have sales of 19,626 buckets of balls per year at a price per bucket of $ 5.00 8 Costs other than taxes are expected to be $ 35,287.00 plus 16% of sales. 9 The project would have an initial NOWC requirement of $ 6,348.00 which would be returned in year 6. N 10 Fairways will have a combined Federal + State tax rate of 25% and has a WACC of 17%. 11 Complete the following table as we illustrated in class and compute the project's NPV, IRR, MIRR, and Payback. 12 Make a recommendation regarding whether or not the company should take on the project or not. 13 14