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.

Cost of land$302,700Cost to build soccer fields, dorm and dining facility$605,400Annual cash inflows assuming 150 players and 8 weeks$928,280Annual cash outflows$847,560Estimated useful life20 yearsSalvage value$1,513,500Discount rate8%

Coolplay Corp. is thinking about openlng a soccer camp in southern California. To start the camp, Coolplayr would need to purchase land and build four soccer elds 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 facllity for 20 years, Coolplayr can sell the property for more than it was origlnallyr purchased for. The Following amounts have been estimated. Cost of land $302,700 Costto build soccer fields, dorm and dining facility $605,400 Annual cash inows assuming 15 players and 8 weeks $928,280 Annual cash outflows $847,560 Estimated useful life 20 years Salvage value $1,513,500 Discount rate 8% Click here to View W table. Calculate the net premnt value of the project. (If the net present vaiue is negative, use either a negative sign preceding the number eg -6 or parentheses eg (45). Round answer to O decimai pieces, e.g. 12.5. For caicuiatian purposes, use .5 decimai pieces as displ'ayed in the factor table mvided.) Net present value $\\:| Should the project be accepted? The project I: 9 l he accepted. 'umc'm'rEI |' LINK-rum] [11":me To gauge the sensitivity of the project to these estimates, assume that If only 125 players attend each week, annual cash inows will be $812,245 and annual cash oulows will be $755,750. What Is the net premnt value uslng these alternative estimates? (If the net present vaiue is negative, use either a negative sign preceding the number eg 4.5 or parentheses eg (45). Round answer to 0 decimai pieces, 259. 125. Far caicuiatidn purposes, use .5 decimai places as dispiayed in the factor tabie provided.) Net present value $\\:| Should the project be accepted? The project I: 9 l he accepted. Assuming the orlglnal facts, What Is the net present value If the project Is actually riskier than rst assumed and a 10% discount rate ls more appropriate? (If the net present value is negative, use eltller a negative sign precedlng the number eg 45 or parentheses eg (45). Round answer to D declmal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $\\:| Should the project he accepted? The project |: GI be accepted. unmm'rsrr] I. Lnlrrerat'rl IILIIIK'IDTEXT- Assume that during the rst 5 years, the annual net cash ows each year were only $40,350. At the end of the lth year, the company ls running low on cash, m management decldes to sell the property for $1,343,988. What was the actual Internal rate of return on the project? (Round answer to o declmai places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Actual Internal rate of return :Wu