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Cullumber Corp. is thinking about opening a soccer camp in southern California. To start the camp, Cullumber would need to purchase land and build four
Cullumber Corp. is thinking about opening a soccer camp in southern California. To start the camp, Cullumber 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, Cullumber can sell the property for more than it was originally purchased for. The following amounts have been estimated. 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 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. TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1
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