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Please show complete work and correct answers in same format. Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the
Please show complete work and correct answers in same format.
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 $303,000 $606,000 Cost to build soccer fields, dorm and dining facility Annual cash inflows assuming 150 players and 8 weeks $929,200 Annual cash outflows $848,400 Estimated useful life 20 years Salvage value $1,515,000 Discount rate 8% Click here to view P table 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 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.) Net present value s Should the project be accepted? The project be acceptedStep by Step Solution
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