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Please help! Crane Corp. is thinking about opening a soccer camp in southern California. To start the camp. Crane would need to purchase land and
Please help!
Crane Corp. is thinking about opening a soccer camp in southern California. To start the camp. Crane 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, Crane can sell the property for more than it was originally purchased for. The following amounts have been estimated. Click here to view the factor table. (a) Calculate the net present value of the project. (If the net present value is negative, use either a negative sign preceding the number eg. -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.) To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week, annual cash inflows will be $821,100 and annual cash outflows will be $765,000. 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 $ 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 volue is negative, use either a negative sign preceding the number eg. - 45 or parentheses eg. (45). Round answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) $Step by Step Solution
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