Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp, Coolplay 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, Coolplay can sell the property for more than it was originally purchased for. The following amounts have been estimated.

Coolplay Corp. is thinking about opening a soocer camp in southern California. To start the camp, Coolplay would need to purchase land and build four soccer elds and a sleeping and dining facility to house 150 soocer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire oollege socoer 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, Coolplay can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $330,900 Cost to build soccer fieldsr dorm and dining facility $661,800 Annual cash inflows assuming 15 players and 8 weeks $1,014,?60 Annual cash outflows $926,520 Estimated useful life 20 years Salvage value $1,654,500 Discount rate 8% Click here to view W table. Calculate the net prewnt value of the project. (If the net present vaiue is negative, use eithera negative sign preceding the number eg :5 or parentheses eg [45). Round answer to o decimai piaces, e.g. 125. For caicuiation purposes, use 5 decimal places as dispiayed in the fatter tame provided.) Net present value $: Should the project be accepted? The project | | be accepted. To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week, annual cash inows will be $837,915 and annual cash outows will be $827,250. What is the net prewnt value uslng these alternative estimates? (If tile net present vaiue is negative, use either a negative sign preceding the number eg 45 or parentheses eg (4.5). Round answer to a decimai piaces, eg. 125. For caicuiation purposes, use .5 decimai piaces as dispiayed in the factor tabie provided.) Net present value $: Should the project be accepted? The project I: | be accepted. Assuming the orlglnal facts, what Is the net present value if the project is actually riskier than first aumed and a 10% discount rate Is more appropriate? (If the net present Iralue is negative, use either a negative sign preceding the number eg as or parentheses eg [45). Round answer to a decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table plevlded.) Net praent value 5: Should the project he accepted? The project I: 3] he accepted. Assume that during the rst 5 years, the annual net cash flows each year were only $44,120. At the end of the fth year, the company Is running low on cash, so management decldes to sell the property for $1,469,196. What was the actual internal rate of remm on the project? (Round answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Actual lntemal rate of return \\:%