Crane Corp. is thinking about opening a soccer camp in southern California. To start the camp, Crane would need to purchase land andTo gauge the sensitivity of the project to these estimates, assume that if only $125$ players attend each week, annual cash inflows

will be $$806,610$ and annual cash outflows will be $$751,500.$

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 e$.$g$.-45$ or parentheses e$.$g$.(45).$ Round answer to $0$ decimal places, e$.$g$.125.$ 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

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$($c$)$

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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, Crane 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

Salvage value

Discount rate

$$300,600$

$$601,200$

$$921,840$

$$841,680$

$20$ years

$$1,503,000$

$8\%$

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$($a$)$

Calculate the net present value of the project. $($If the net present value is negative, use either a negative sign preceding the number e$.$g$.$

$-45$ or parentheses e$.$g$.(45).$ Round answer to $0$ decimal places, e$.$g$.125.$ 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.