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Determining the viability of a long-term capital investment is a fundamental aspect of corporate accounting. In this assignment, you use Excel to make and interpret

Determining the viability of a long-term capital investment is a fundamental aspect of corporate accounting. In this assignment, you use Excel to make and interpret specified calculations for a capital investment analysis that includes sensitivity and what-if analyses for a proposed football training facility.

Instructions

  • Read the following scenario and use the Week 4 Assignment Template [XLSX] to complete this assignment.
  • Specific directions are included in the template. Make sure to complete all tabs for Parts 1 and 2 and follow the directions given in each.
  • Note that you must add functionality to the appropriate spreadsheets to make the proper calculations.

Scenario

Use the following to scenario for your work:

Kicking It Corp. is planning to open a football camp in Arizona, which will require a land purchase and facilities development that includes fields, sleeping and dining facilities, maintenance equipment and other capital expenditures. Each year, the camp will run for eight one-week sessions. The company will also incur operational expenses.

The estimates in the following table have been shared with company leadership and investors:

Estimated Figures

Item

Amount

Land $300,000
Facilities $600,000
Annual Cash Flow (150 total yearly players' fees) $920,000
Annual Cash Outflows $840,000
Estimated Useful Life of Facilities 20 years
Facilities Salvage Value $1,500,000
Discount Rate 8%

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