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***PLEASE ANSWER IN THE FORMAT PROVDED BELOW. ALSO, PLEASE CLEARLY LABEL ANSWER FOR EACH PART*** Coolplay Corp. is thinking about opening a soccer camp in

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***PLEASE ANSWER IN THE FORMAT PROVDED BELOW. ALSO, PLEASE CLEARLY LABEL ANSWER FOR EACH PART*** Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp, Coolplay 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, Coolplay can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land Cost to build soccer fields, derm and dining facility Annual cash inflows assuming 150 players and 8 weeks Annual cash outflows $324,000 $648,000 $993,600 $907,200 Estimated useful life 20 years $1,620,000 Salvage value Discount rate 8% 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 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Slype your answer here Should the project be accepted? The project Choose your answer here be accepted Question Part Score To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week, annual cash inflows will be $869,400 and annual cash outflows will be $810,000. 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 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value SType your answer here Should the project be accepted? The project should be Choose your answer here Question Part Score Assuming the original facts, what is the net present value if the project is actually riskier than first assumed and a 10% discount rate is more appropriate? (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 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value SType your answer here Should the project be accepted? The project Choose your answer here be accepted

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