Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show work 20 School X was approached by a company called Pointstreak S0s0 (5050 Central) about implementing their 21 software system to enhance and
Please show work
20 School X was approached by a company called Pointstreak S0s0 (5050 Central) about implementing their 21 software system to enhance and improve raffle ticket sales at its sporting events. The terms of the proposed contract 22 between Pointstreak 5050 and UW-Superior include the following 23 24$8,500 up front cost for the computer system and handheld devices 25 26 [Remittance of 10% of its annual gross raffle ticket sales to Pointstreak 5050 for the life of the contract 27 28 The contract length is proposed at five years 29 30 l School X average annual 50/50 raffle ticket sales are approximately S8, 500 31 32 School X is able to bond through the State of Wisconsin's bonding authority- given this ability 33 and other factors, School X's weighted average cost of capital (WACC) is approximately 5% 34 35 This is an independent project -this project will not impact or affect any other projects on campus 36 37 The computer equipment will not have a salvage value at the end of year five 38 39 Your task is to evaluate this proposed project using all five methods discussed in class 40 41 1. Net Present Value 42 2. Internal Rate of Return 43 3. Modified Internal Rate of Return 444, Regular Payback Method 45 5. Discounted Payback Method 46 47 Please visit the company's web site to gain familiarity with who they are and how their product is used 48 http://www.pointstreak5050.com 49 50 1. Based on the information given and your caculations using the five methods listed above, should UW-Superior accept or reject this proposal? 51 2. Please answer the questions on the last sheet tab. 52 53 You may work on this assignment individually or in groups of two. If you work on this assiznment in a group, then please hand in one copy with 54 all of the group members' names listed so i know who worked together on this projectStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started