Sheet1 Sheet2 The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will need to purchase a ball dispensing machine All of this depreciable equipment will be immediately fully depreciated using bonus depreciation. Item 64,390 Equipment Cost Buckets Sold Value 64390 19759 Bucket Price 4 4 Fixed Cost 35029 19% of sales Variable Cost 0.19 5,009 which would be returned in year 6. 17% NOWC 5009 WACC 0.17 The project is expected to operate for 6 years, at the end of which the equipment will be sold for 40% of its original cost. Fairways expects to have 19,759 buckets of balls per year at a price per bucket of 35,029 plus Costs other than taxes are The project would have a Fairways will have a com Complete the following table as we illustrated in class and compute the project's NPV, IRR. MIRR, and Payback Make a recommendation regarding whether or not the company should take on the project or not. Purchase Price Taxes Saved Increase in NOWC Total Cash Flow Sales Costs Taxable Income Tax Operating Cash Flow Selling Price Basis Gain on Sale Tax After Tax Cash Flow Return of NOWC Total Cash Flows NPV IRR MIRR Cumulative Payback 0 . 2 3 4 5 6