The following information pertains to Fairways Driving Range, Inc.:

But the more I do for this project; it seems that opportunity costs could help them extend

their company. Opportunity costs relate to the funds that the company already has. (Brigham &

Ehrhardt, 2017). From year two and on, the revenue steadily increased. So, the company could

use the money to put additions on the driving range. But falling back to the concerns of the need

for customers, the opportunity may become a sunken cost. A sunken cost is an outlay related to

the project that was incurred in the past and that cannot be recovered in the future regardless of

whether the project is accepted. (Brigham & Ehrhardt, 2017).and 55% equity. They can issue new bonds to yield 5%. With respect to equity, the companys beta is 1.75 the expected return on the market is 10% and the risk free rate is 4%. Use this information to compute the companys WACC and then use the WACC as the required return for this project.

Please complete the following tables to determine the NPV for Fairways Driving Range, Inc.s proposed Sanford venture. PLEASE ROUND ALL FIGURES TO THE NEAREST WHOLE DOLLAR!

For each year of the project, compute the profit margin and EPS (assuming that the firm has 15,000 shares of stock outstanding). Besides the net value of the fixed assets, the company also expects to have $20,000 of other assets. Compute the total assets for each year, use the 45%/55% ratio to determine the total amounts of liability and equity for each year, and use those figures to compute ROA and ROE for each year.

Based on your financial analysis, prepare a paragraph or so of a summary from the stand point of a consultant. In this summary, provide your ideas about this project and what you think would be the best course of action for the company to follow and why. Remember to justify your answers with facts from your calculations as well as provide meaningful insight for the company.