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Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $179,000, would be depreciated on a straightline basis
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $179,000, would be depreciated on a straightline basis over its 4-year life, and would have a zero salvage value. The sales would be $93,500 a year, with variable costs of $28,350 and fixed costs of $12,950. In addition, the firm anticipates an additional $22,900 in revenue from its existing facilities if the putt putt course is added. $3,550 of net working capita A. Determine the cash flow from assets forital, which is recoverable at the end of the project. B. What is the net present value of this project at a discount rate of 11 . B. What is the net present value of this project at a discount rate of 11 percent and a tax rate of 34 percent
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