Question
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
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:
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% |
calculate the following for the project:
Net Present Value (NPV).
Payback Period (PP).
Internal Rate of Return (IRR).
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