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Problem 25-05A a-c, di (Video) Concord Corp. is thinking about opening a soccer camp in southern California. To start the camp, Concord would need to

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Problem 25-05A a-c, di (Video) Concord Corp. is thinking about opening a soccer camp in southern California. To start the camp, Concord 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, Concord can sell the property for more than it was originally purchased for. The following amounts have been estimated. Concord can sell the propertise in value. It is expected that after uses in southern California Cost of land Cost to build soccer fields, dorm and dining facility Annual cash inflows assuming 150 players and 8 weeks Annual cash outflows Estimated useful life Salvage value Discount rate $302,100 $604,200 $926,440 $845,880 20 years $1,510,500 8% Click here to view PV table. Calculate the net present value of the project. (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 O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Should the project be accepted? The project be accepted. To gauge the sensitivity of the project to these estimates, assume that if only 125 players attend each week, annual cash inflows will be $810,635 and annual cash outflows will be $755,250. 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 o decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Should the project be accepted? ALCULATOR MESSAGE MY INSTRUCTOR STANDARD VIEW PRINTER VERSION

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