problem12.5 and the instructions

F12.5 ( 102,3,4), E Service Cooiplay Corp, is thinking about opening a soceer camp in southern Conpute net presert value and internal caldamic. To start the canp, Coolplay woald ned to purchase land and build four soccer fields and a nate of return with sensithity analysis. theping and dining fecility to bouse 180 soceet players. Each year, the camp would be run for 8 sessions of t wrekesch. The compuny weuld hire college socecr players as coaches. The camp attendees would be mak and female socoet players apes 12-18. Property values in southern California have enjoyed a steady iscreace in valuc. It is expectad that affer using the faclity for 20 years, Coolplay can sell the property for more than it was originally purchased for. The following amounts have becn estimated. 12.36 CKAptes 12 fianning for Capital inve Instructions a. Calculae the net present value of the project. b. To pase the sensitivity of the project to these estimates, assume that if only 125 players attend each wrek, annual cash inflows will be $805,000 and annual cash outflows will be $750,000. What is the net present value using these altemative estimates? Discuss your findings. c. Assuming the original facts, what is the net present value if the project is actually riskier than first asumed and a 10\% discount rate is more appropriate? d. Assume that during the fist 5 years, the annual net cash flows each year were only $40,000.At the end of the fitth year, the company is running low on cash, so management decides to sell the property for 51,332000 . What was the actual internal rate of return on the project? Explain how this relurn was possible given that the camp did not appear to be successful