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Carla Vista Corp, is thinking about opening a soccer camp in southern California. To start the camp, Carla Vista would need to purchase land and

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Carla Vista Corp, is thinking about opening a soccer camp in southern California. To start the camp, Carla Vista would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Carla Vista can sell the property for more than it was originally purchased for. The following amounts have been estimated Cost of land Cost to build soccer fields, dorm, and dining facility Annual cash inflows assuming 150 players and 8 weeks Annual cash outflows Estimated useful life $330,300 $660,600 $1.012,920 $924,840 20 years $1,651,500 Salvage value 8% Discount rate Calculate the net present wave of the project.czr the net present value la negative either a negative non preceding the number 45 er warenhusus us (48) Round answer to see decimal places displayed in factor Net present value Should the project be accepted? The project be accepted To gauge the sensitivity of the project to these estimates, assume that it only 125 players attend ach week, annual Chinows wit be 1877,450 and annual cautions will be $817,500 What is the net present value using these alternative estimates? (Ir the net present value la nevetve, a ether a negative in preceding the number -45 or runtherus op (48). Router places. 125. For calculation purposes, we decimal places as displayed in the factor table provided) Set present value should the project be accepted! be accepted Asuming the orginal facts, what is the net present value of the project is than rotassumed and a 10% untrate is more appropriate (the presentative in negative, weer preceding the number -15 or parentheses (45) found answer to decimal places. 125. Forcallation purposes, we decimal places as played in the factor table previ Net present Valve Should the project be accepted Tert be accepted

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