Need some help with b) on both questions, thanks!

1.

Sheridan Corp. is thinking about opening a soccer camp in southern California. To start the camp, Sheridan 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 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Sheridan can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $321,000 Cost to build soccer fields, dorm, and dining facility $642,000 Annual cash inflows assuming 150 players and 8 weeks $984,400 Annual cash outflows $898,800 Estimated useful life 20 years Salvage value $1,605,000 Discount rate 8% Click here to view the factor table. (a) Your answer is correct. Calculate the net present value of the project. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value $ 221783 Should the project be accepted? The project should be accepted.(b) To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week, annual cash inflows will be $861,350 and annual cash outflows will be $802,500. What is the net present value using these alternative estimates? (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Should the project be accepted? The project should be VBlossom Company is considering three longterm capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $166,000 $176,000 $206,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,5 10 23,690 3 14,420 16,480 21,630 4 14,420 12,360 13,390 5 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straightline method with no salvage value. The companfs cost of capital is 15%. {Assume that cash ows occur evenly throughout the year.} Click here to view thefactor table. (a) 9' Your answer is correct. Compute the cash payback period for each project. {Round answers to 2 docinml places. 23. 10.50.} Project Bono 3.49 years Project Edge 3.38 years Project Clayton 3.17 years (b) Compute the net present value for each project. (Round answers to O decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value $ $