Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Flint Corp. is thinking about opening a soccer camp in southern California. To start the camp, Flint would need to purchase land and build four

image text in transcribed
Flint Corp. is thinking about opening a soccer camp in southern California. To start the camp, Flint 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, Flint 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 $330,300 $660,600 $1.012,920 $924,840 20 years $1,651,500 8% Click here to view Py table. (a) 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 e.o. (45). Round answer to 0 decimal places, 6.0. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamic Data Sharing For Public Data Integrity Auditing In The Cloud

Authors: B Gunalan

1st Edition

050911878X, 978-0509118789

More Books

Students also viewed these Accounting questions