Hampton-Smith, Associates. is thinking about opening a Soccer camp in North Carolina. In order to start the camp, the company would need to purchase land, build five baseball fields, and a dormitory-type sleeping and dining facility to house 100 players. Each year the camp would be run for 10 sessions of 1 week each. The company would hire college baseball players as coaches. The camp attendees would be baseball players age 12-18. Property values in North Carolina have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Shilling can sell the property for more than it was originally purchased for. The following amounts have been estimated: $ 630,000 Cost of land Cost to build dorm and dining facility Annual cash inflows assuming 100 players and 10 weeks Annual cash outflows Estimated useful life Salvage value Discount rate 2,100,000 2,520,000 2,260,000 20 years $ 4,400,000 9% Instructions You must show ALL computations. (a) Calculate the net present value of the project. (b) To gauge the sensitivity of the project to these estimates, assume that if only 80 campers attend each week, re 85,000 and expenses will be $1.865,000. What is the net present value using these alternative estimates? Discuss your the project is actually riskier than first assumed, and a 12% discount findings (c) Assuming the original facts, what s the net present value if rate is more appropriate