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. 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. 19,626 buckets of halls per year at a price per bucket of 35,287 plus Fairways expects to have Costs other than taxes are Item 74,637 Equipment Cost Value 74637 Bockets Sold 19626 Bucket Price 5 5 Fixed Cost 35287 16% of sales Variable Cost 0.16 The project would have a Fairways will have a com 6,348 which would be returned in year 6. 17% NOWC 6348 WACC 0.17 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