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please help and explain how to do each question. 1. 2. 3. Outdoor Sports is considering adding a putt putt golf course to its facility.
please help and explain how to do each question.
1.2.
3.
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $165,000, would be depreciated on a straight-line basis over its 5-year life, and would have a zero salvage value. The sales would be $83,000 a year, with variable costs of $27,300 and fixed costs of $11,900. In addition, the firm anticipates an additional $14,500 in revenue from its existing facilities if the putt putt course is added. The project will require $2,500 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 percent? A company is considering a new 6-year project that will have annual sales of $213,000 and costs of $132,000. The project will require fixed assets of $251,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 40 percent. What is the operating cash flow for Year 2? Bad Company has a new 4-year project that will have annual sales of 8,500 units. The price per unit is $20.00 and the variable cost per unit is $7.75. The project will require fixed assets of $95,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $35,000 per year and the tax rate is 35 percent. What is the operating cash flow for Year 3Step by Step Solution
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