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PLEASE ANSWER IN FULL QUESTION AND SHOW ALL WORK, I WILL GIVE THUMBS UP! The Golf Range is considering adding an additional driving range to
PLEASE ANSWER IN FULL QUESTION AND SHOW ALL WORK, I WILL GIVE THUMBS UP!
The Golf Range is considering adding an additional driving range to its facility. The range would cost $229,000, would be depreciated on a straightline basis over its seven-year life, and would have a zero salvage value. The anticipated revenue from the project is $62,500 a year with $18,400 of that amount being variable cost. The fixed cost would be $15,700. The firm believes that it will earn an additional $22,500 a year from its current operations should the driving range be added. The project will require $3,000 of net working capital, which is recoverable at the end of the project. What is the internal rate of return on this project at a tax rate of 34 percentStep by Step Solution
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