G 53345 20009 0. 4500 0.17 D E 1. The following information pertains to Fairways Driving Range, loc. The company is considering operating a new driving range facility in Sanford, FL In order to do so, they will need to purchase Item la ball dispensing machine, a ball pick-up vehicle, and a tractor and accessories for a total cost of Value 53,845.00 Equipment Cost 5 All of this depreciable equipment will be immediately fully depreciated using books depreciation Buckets sold 6 The project is expected to operate for 6 years, at the end of which the equipment will be sold for 40% of its original cost Bucket Price 7. Fairways expects to have sales of 20,009 buckets of balls per year at a price per bucket of 4.00 Fixed Cost Costs other than taxes are expected to be S 45,231.00 plus 19% of sales Variable Cost 9. The project would have an initial NOWC requirement of $ 4,500.00 which would be returned in year 6, NOW 10 Fairways will have a combined Federal State tax rate of 25% and has a WACC of 17% WACC 11. Complete the following table as we illustrated in class and compute the project's NPV, IRR. MIRRand Payback 12 Make a recommendation regarding whether or not the company should take on the project or not 1a 14 0 1 2 16 Purchase Price 17 Taxes Saved an increase in NOWC 19 Total Cash Flow 20 Sales 21 Costs 22 Taxable income 23 Tas 24 Operating Cash Flow 25 Selling Price Mass 21 Gain on Sale 13 0 2 4 5 6 Purchase Price Taxes Saved Increase in NOWC Total Cash Flow Sales Costs Taxable income Tax Operating Cash Flow Selling Price Basis Gain on Sale Tax After Tax Cash Flow 5 Return of NOWC 1 Total Cash Flows 2NPV 3. IRR 14 MIRR 15 Cumulative 36 Payback 87 38 39 40 Sheet1 Sheetz