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: 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 Discount Rate 8%
Calculate: Net Present Value (NPV). Payback Period (PP). & Internal Rate of Return (IRR).
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