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Solve using excel 3. Outdoor Sports is considering adding a putt putt golf course to its faciility. The course would cost $187,000, would be depreciated
Solve using excel
3. Outdoor Sports is considering adding a putt putt golf course to its faciility. The course would cost $187,000, would be depreciated on a straight line basis over its 5 yr life, and would have a zero salvage value. The sales would be $91,500 a year with a variable cost of $28,400 and fixed costs of $13,000. In addition, the firm anticipates an additional $23,300 in revenue from its existing facilitiles if the putt putt course is added. The project will require $3,600 of net working capital, which is recoverable at the end of the project. What is the NPV of this project at a discount rate of 10% and a tax rate of 23% Step by Step Solution
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