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A golf company is thinking of opening a new production facility. Key data are shown below. They already own a building that is suitable for this purpose. There is, however, a developer who has offered $250,000 for the building which would net them $175,000 after taxes if the company decides not to use the existing building for the production facility. The production equipment necessary for the project would be fully depreciated on a straight line basis by the end of the project's 4 year life (ie book value will = 0). The working capital investment that the company must make in the first year of the project is expected to be recouped in year. Revenues and operating expenses will be constant over the life of the project. Model the opportunity as if the existing building would be used for the new facility. What is this project's NPV? Round to whole dollars please. Would you accept this project, why or why not?

WACC Production Equipment Cost Straight Line Depreciation Each Year Annual Revenue Annual COGS Annual Operating Expenses Tax Rate Days of Accounts Receivable Outstanding Inventory Turnover Accounts Payable Days Outstanding 12% $ 135,000 25% (included in Operating Expenses) $ 250,000 $ 70,000 $ 70,000 22% 42 days 4 x 30 days YEAR 0 1 2 3 4 5 Fill in your Model and Calculate NPV WACC Production Equipment Cost Straight Line Depreciation Each Year Annual Revenue Annual COGS Annual Operating Expenses Tax Rate Days of Accounts Receivable Outstanding Inventory Turnover Accounts Payable Days Outstanding 12% $ 135,000 25% (included in Operating Expenses) $ 250,000 $ 70,000 $ 70,000 22% 42 days 4 x 30 days YEAR 0 1 2 3 4 5 Fill in your Model and Calculate NPV