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Question 9 (8 points) Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on

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Question 9 (8 points) Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight-line basis over its 6- year life, and would have a zero salvage value. The estimated income from the golfing fees would be $72,000 a year with $24,000 of that amount being variable cost. The fixed cost would be $11,600. In addition, the firm anticipates an additional $14,000 in revenue from its existing facilities if the golf course is added. The project will require $3,000 of net working capital, which is recoverable at the end of the project. The discount rate is 12 percent and the tax rate is 34 percent. a) What is the operating cash flow (OCF) of this project for the first year? Show your calculations. b) What is the net present value (NPV) of this project? Show your calculations

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