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 $330,600 $661,200 $1.013.840 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 Salvage value Discount rate $925,680 20 years $1,653,000 8% Click here to view the factor table Calculate the net present value of the project. If the net present value is negative, use either a negative sign preceding the number eg. -45 or parentheses es (45). Round answer to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value $ Should the project be accepted? The project be accepted. e Textbook and Media To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week, annual cash inflows will be $887.110 and annual cash outflows will be $826,500 What is the net present value using these alternative estimates? (If the net present value is negative, use either a negative sign preceding the number eg.-45 or parentheses es (45). Round answer to O decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value $ Should the project be accepted? The project should be e Textbook and Media Assuming the original facts, what is the net present value if the project is actually riskier than first assumed and a 10% discount rate is more appropriate? (If the net present value is negative, use either a negative sign preceding the number eg.-45 or parentheses eg. (45). Round answer to decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Net present value $ Should the project be accepted? The project be accepted e Textbook and Media stion Part score --/0.85 Assume that during the first 5 years, the annual net cash flows each year were only $44,080. At the end of the fifth year, the company is running low on cash, so management decides to sell the property for $1,467,864. What was the actual internal rate of return on the project? (Round answer to decimal places, es 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Actual internal rate of return eTextbook and Media TABLE 1 Future Value of 1 ) Periods 0 1 2 4 5 6 8 9 10 1.00000 1.04000 1.08160 1.12486 1.16986 1.21665 1.26532 1.31593 1.36857 1.42331 1.48024 1.53945 1.60103 1.66507 1.73168 1.80094 1.87298 1.94790 2.02582 2.10685 2.19112 5% 1.00000 1.05000 1.10250 1.15763 1.21551 1.27628 1.34010 1.40710 1.47746 1.55133 1.62889 1.71034 1.79586 1.88565 1.97993 2,07893 2.18287 2.29202 2.40662 2.52695 2.65330 6% 1.00000 1.06000 1.12360 1.19102 1.26248 1.33823 1.41852 1.50363 1.59385 1.68948 1.79085 1.89830 2.01220 2.13293 2.26090 2.39656 2.54035 2.69277 2.85434 3.02560 3.20714 796 1.00000 1.07000 1.14490 1.22504 1.31080 1.40255 1.50073 1.60578 1.71819 1.83846 1.96715 2.10485 2.25219 2.40985 2.57853 2.75903 2.95216 3.15882 3.37993 3.61653 3.86968 8% 1.00000 1.08000 1.16640 1.25971 1.36049 1.46933 1.58687 1.71382 1.85093 1.99900 2.15892 2.33164 2.51817 2.71962 2.93719 3.17217 3.42594 3.70002 3.99602 4.31570 4.66096 9% 1.00000 1.09000 1.18810 1.29503 1.41158 1.53862 1.67710 1.82804 1.99256 2.17189 2.36736 2.58043 2.81267 3.06581 3.34173 3.64248 3.97031 4.32763 4.71712 5.14166 5.60441 10% 11 1.00000 1.00000 1.10000 1.11000 1.21000 1.23210 1.33100 1.36763 1.46410 1.51807 1.61051 1.68506 1.77156 1.87041 1.94872 2.07616 2.14359 2.30454 2.35795 2.55803 2.59374 2.83942 2.85312 3.15176 3.13843 3.49845 3.45227 3.88328 3.79750 4.31044 4.17725 4.78459 4.59497 5.31089 5,05447 5.89509 5.55992 6,54355 6.11591 7.26334 6.72750 8.06231 12 1.00000 1.12000 1.25440 1.40493 1.57352 1.76234 1.97382 2.21068 2.47596 2.77308 3.10585 3.47855 3.89598 4.36349 4,88711 5.47357 6.13039 6.86604 7.68997 8.61276 9,64629 15% 1.00000 1.15000 1.32250 1.52088 1.74901 2.01136 2.31306 2.66002 3.05902 3.51788 4.04556 4.65239 5.35025 6.15279 7.07571 8.1716 9.35762 10.76126 12.37545 14.23177 16.36654 11 12 13 14 15 16 17 18 19 20 12 TABLE 2 Future Value of an ARRU CH Payments 5% 6% 7% 84 99 109 119 155 1.00000 1.00000 1.00000 1.0000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 2.04000 2.05000 2.06000 2,0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3 3.12160 3.15250 3.18360 3.2149 3.24640 3.27810 3.31000 3.34210 3.37440 3.47250 4 4.24646 431013 4.37462 4.4399 4,50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.63709 5.7507 5.86660 598471 6.10510 6.22780 6.35285 6,74238 6 6.63298 6.80191 6.97532 7.1533 7.33592 752134 7.71561 7.91286 8.1 1519 8.75374 7 789829 8.14201 8.39384 8.6540 8.92280 9.20044 9.48717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16,64549 17.56029 18.53117 19.56143 20.65458 24,34928 12 15.02581 15.91713 16,86994 17.8885 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34 35192 14 18.29191 19,59863 21.01507 22.5505 24.21492 26.01919 27.97498 30.09492 32.39260 40.50471 15 20.02359 21.57856 23.27597 25.1290 27.15211 29.36092 31.77248 34.40536 37.27972 47.58041 16 21.82453 23.65749 25.67253 27.888! 30.32428 33.00340 35.94973 39.18995 42.75328 55.71747 17 23.69751 25.84037 28.21288 30.8402337502336.97351 40.54470 44.50084 48.88367 65 07509 IR 25.64541 28.13238 30.90565 33.9990 37.45024 41.30134 45.59917 50.39593 55.7497275713636 19 27.67123 30.53900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.43968 88.21181 20 29.77808 3306595 36 78559_40.9955 45.76196 51.16012 57.27500 64.20283 72.05244 102.44358 TABLE3 Present Value of 1 (n Periods 2 3 4 5 6 7 8 9 10 11 12 13 14 15 4 96154 92456 88900 35480 R2193 679031 75992 73009 70259 67556 6495 62460 0057 57748 55526 59 95238 40703 86384 82270 78353 74622 71068 67684 64461 61391 58468 55684 53032 50507 48102 6 94340 89000 23962 79209 74726 .70496 66.506 62741 59190 55839 52679 7% 0.91458 0.87344 0.81630 0.76290 0.71299 0.66634 0.62275 0.58201 054393 050835 0.47509 0.44401 0.41496 038782 0.36245 84 92593 85734 79383 73503 68058 63017 SR149 54027 50025 46319 42888 39711 36770 34046 31524 996 91743 84168 77218 70843 64993 504627 54703 50187 46043 42241 38753 35554 32618 29925 27454 109 90909 82645 75132 68301 62092 56447 5136 46651 42410 3:554 135049 31861 28966 26333 29939 90090 81162 73119 65873 59.145 54464 48166 41393 19092 35218 31728 28584 25751 23199 20200 12% 19286 79719 71178 61552 56743 50663 45235 40388 36061 32197 28748 25668 22917 201462 18270 155 86957 75614 65752 57175 49718 43213 37594 3260 28426 24719 21494 18691 16251 1111 12219 46884 44230 41727 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 82193 .79031 .75992 .73069 .70259 67556 64958 62460 60057 57748 55526 -53391 51337 49363 47464 45639 .78353 174622 .71068 67684 64461 .61391 58468 55684 53032 50507 -48102 45811 43630 41552 39573 37689 .74726 0.71299 .70496 0.66634 66506 0.62275 .62741 0.58201 59190 0.54393 55839 0.50835 52679 0.47509 49697 0.44401 468R4 0.41496 44230 0.38782 41727 0.36245 .39365 0.33873 37136 0.31657 35034 0.29586 33051 0.27615 31180. 0.25842 68058 63017 58349 54027 50025 46319 42888 .39711 36770 34046 31524 29189 -27027 25025 23171 21455 NONG .64993 59627 54703 50187 46043 .42241 38753 35554 32618 29925 27454 25187 23107 21199 .19449 17843 62092 .56447 .51316 46651 42410 38554 35049 31863 28966 26333 23939 21763 19785 17986 .16351 .14864 59345 53464 48166 43393 39092 35218 31728 28584 25751 23199 20900 18829 .16963 15282 13768 12403 .56743 50663 45235 40388 36061 32197 28748 25668 22917 20462 18270 16312 14564 .13004 11611 10367 49718 43233 37594 32690 28426 24719 21494 18691 16253 14133 .12289 10687 .09293 08081 07027 06110 TABLE4 Present Value of an Annuity of 1 (n) 5% Payments 1 2 3 4 5 6 7 8 9 10 4% 6% 96154 95238 94340 1.88609 1.85941 1.83339 2.77509 2.72325 2.67301 3,62990 3.54595 3.46511 4.45182 432948 4.21236 5.24214 5.07569 491732 6.00205 5.78637 5.58238 6,73274 6.46321 6.20979 7.43533 7.10782 6.80169 8.11090 7.72173 7.360X0y9 8.76048 8.30641 7.88687 9.38507 8.86325 8.38384 9.98565 9.39357 8.85268 10.56312 9.89864 9.29498 11.11839 10.37966 9.71225 11.65230 10.83777 10.10590 12.16567 11.27407 10.47726 12.65930 11.68959 10.82760 13.13394 12.08532 11.15812 13.59033 12.46221 11.46992 7% 0.93458 1.80802 2.62432 3.38721 4.10020 4.76654 5.38929 5.97130 6.51523 7.02358 7.49867 7.94269 8.35765 8.74547 9.10791 9.44665 9.76322 10.05909 10.33560 10.59:401 8% 92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 9% 10% 91743 90909 1.75911 1.73554 2.53130 2.48685 3.23972 3.16986 3.88965 3.79079 4.48592 4.35526 5.03295 4.86842 5.53482 5.33493 5.99525 5.75902 6.41766 6.14457 6.80519 6.49506 7.16073 6.81369 7.48690 7.10336 7.78615 736669 8.06069 7.60608 8.31256 7.82371 8.54363 8.02155 8.75563 8 20141 8.95012 8.36492 9.12855 8,51356 11% 90090 1.71252 2.44371 3.10245 3.69590 4.20054 4.71220 5.14612 5.53705 5.88923 6.20652 6.49236 6.74987 6.98187 7.19087 7.37916 7.54879 7.70162 783929 7.96333 12 159 .89286 .86957 1.69005 1.62571 2.40183 2.28323 3.03735 2.85498 3.60478 3.35216 4.11141 3.78448 456376 4.16042 4.96764 4.48732 5.32825 4.77158 565022 5.01877 5.93770 5.23371 6.19437 5.42062 6.42355 5.58315 6.62817 5.72448 6,81086 5.84737 6.97399 595424 7.11963 6,04716 7.24967 6,12797 7.36578 6.19823 7.46944 6,25931 11 12 13 14 15 16 17 18 19 20