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PLEASE ANSWER IN FULL QUESTION AND SHOW ALL WORK, I WILL GIVE THUMBS UP! Outdoor Sports is considering adding a miniature golf course to its
PLEASE ANSWER IN FULL QUESTION AND SHOW ALL WORK, I WILL GIVE THUMBS UP!
Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight-line basis over its five-year life, and would have a zero-salvage value. The estimated income from the golfing fees would be $72,000 a year with $24,000 of that amount being variable cost. The fixed cost would be $11,600. In addition, the firm anticipates an additional $14,000 in revenue from its existing facilities if the golf course is added. The project will require $3,000 of net working capital, which is recoverable at the end of the project. What is the net present value of this project at a discount rate of 12 percent and a tax rate of 34 percentStep by Step Solution
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