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Remaining Time: 2 hours, 05 minutes, 05 seconds. Question Completion Status: QUESTION You and your business partners have decided to start an athletic training camp

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Remaining Time: 2 hours, 05 minutes, 05 seconds. Question Completion Status: QUESTION You and your business partners have decided to start an athletic training camp in Nabama To begin, you will need to purchase land buld he outdoor tearing fields, and a do mitory type sleeping and dir ng acilty to house 100 tarees Each year the camp would be run for 10 sessions of 1 week each The company would hire college baseball players as coaches The camp attendees would be athletics age 12 and up property values in Alabama have enjoyed a steady increase in value is expected that ater using the facility for 20 years, Shilling can sel the property for more than it was originally purchased or The following amounts have been estimated Cost of land Cost to build dorm and Sning facility Annual cash inflows assuming 100 players and 10 weeks Annual cash outfows Estimated usell ife Salvage value Discount rate 630,000 2100 000 2,520,000 2 260 000 20 years 400.000 125 Instructions All computations MUST ba shown for cred (a) Calculate the net present valus of the project To gage 2 085 000 and expenses al be $1.05000 What is the net present value vaing these atermative essimates? Discuss your Assuming tho original facts what is tho net present valuethe proiect is actany riskler than first assumed and a 12% discount the sensitivity of the project so ese estimates assune that only 80 campecs attend each week revenues will be (c) ate is more appropriate? 9 DIF

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