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Please help with this question Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $165,000, would be
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Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $165,000, would be ed 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 percentStep by Step Solution
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