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 $302,400 $604,800 Cost to build soccer fields, dorm and dining facility Annual cash inflows assuming 150 players and 8 weeks $927,360 $846,720 Annual cash outflows Estimated useful life 20 years Salvage value $1,512,000 8% Click here to vlew PV table. To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week,annual cash inflows will be $811,440 and annual cash outflows will be $756,000. 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 eg. (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 $ (38483) Should the project be accepted? The project should be rejected eTextbook and Media Attempts: 1 of 5 used Assuming the orginal facts, what s the net present value if the project is actually riskier than first assumed and a 10% discount rate s more appropriate? the net esent value as negative use e thera ne atives n preceding the number eg. 45 or parentheses e-s. (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