Question
Goldbloom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Goldbloom would need to purchase land and build four
Goldbloom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Goldbloom 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 1218. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Goldbloom can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $306,000 Cost to build soccer fields, dorm and dining facility $612,000 Annual cash inflows assuming 150 players and 8 weeks $969,000 Annual cash outflows $856,800 Estimated useful life 20 years Salvage value $1,530,000 Discount rate 8% Cost of land $306,000 Cost to build soccer fields, dorm and dining facility $612,000 Annual cash inflows assuming 150 players and 8 weeks $969,000 Annual cash outflows $856,800 Estimated useful life 20 years Salvage value $1,530,000 Discount rate 8% 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 eg (45). Round answer for present value to 0 decimal places, e.g. 125. Round Discount Factor to 5 decimal places.) Note: I am un able to see questions b,c,d can you please help me once I answer question a? Thank you so much.
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