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Problem 24-5A Goldbloom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Goldbloom would need to purchase land and
Problem 24-5A Goldbloom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Goldbloom would need to purchase land and build four soccer fields 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 playe as coaches. The camp attendees would be m and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. I ale expected that after using the facility for 20 years, Goldbloom can sell the property for more than it was originally purchased for The following amounts have been estimated. Cost of land $300,000 Cost to build soccer fields, dorm and dining facility $600,000 Annual cash inflows assuming 150 players and 8 weeks $940,000 $840,000 Annual cash outflows 20 years Estimated useful life $1,500,000 Salvage value Discount rate 8% Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 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 (45). Round answer for present value to o decimal places, e.g. 125.) Net present value Should the project be accepted
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