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lew de Slides Shapes Arange Quick Editing Font Paragraph Drawing Proiec t Description: Soccer turf fields are very successful businesses in Greece, and you decide to export this usiness model to the U.s. Specifically, you plan to open up a business that rents organized soccer turf fields by e hour in Washington, DC. Since there are no direct competitors, you feel confident that renting soccer fields four.year project horizan. by the hour will be a successful business. However, to be conservative, you plan for a fter that time, increased competition (or lack of interest) may well make the project unviable. . Data You put down a (non-refundable) $10.000 retainer to hire a DC attorney to look into licensing and laws for ner vear. You estimate that variable costs will bs about 75% of sales. Labor, rent, utilities, and all other . Equipment you will need includes cash registers, a computer for keeping the books, an office safe, and 10 soccer you. Judging from the athletic establishments and the general climate in DC, you estimate gross sales of Up 39,000 per year turf fields. All that equipment will be purchased at the beginning of the project. The total cost of your equipment, including installation fees, is estimated about $100.000, and it will be depreciated straight-line to zero over a four year accounting life. After four years the turf fields won't have any market value. . In order to keep things running smoothly, you estimate that the project will require an immediate infusion of net working capital of $15.000, and you will need to retain it until you liquidate the company. Assume the tax rate is 40% and the required return discountratelis 102. Yo 1. Find the NPV, IRR, and payback for this project. Should we invest in this? 2, would you accept this project if the discount rate was 20%? Click to add notes 00 Notes Comments