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:

Estimated Figures

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$

Recalculate the new net present value $($NPV$)$ and payback period using the following data:$$

$125$ players attend the camp.

$10\%$ discount rate.

Annual Cash flow projection $-$ $$805,000.$

Annual Cash Outflow projection $-$ $$750,000.$

B$.$ Creat a NPV Comparison Graph: Create a graph to compare the NPV from part Part $1-1$ to the recalculation in part A of this worksheet.

C$.$ Interprete the Sensitivity Analysis: Consider the scenario and your calculations to interpret what the sensitivity analysis reveals by considering the variability among the different discount rates and potential returns.