The following information pertains to Fairways Driving Range, the Value 72541 19760 The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will need to purchase Item ball dispensing machine a ball pick up vehicle, and a tractor and necessories for a total cost of S 72,541.00 Equipment Cost All of this depreciable equipment will be immediately fully deprecated using bonus depreciation nuckets sold 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 Bucket Price Fairways expects to have sales of 19,760 buckets of balls per year at a price per bucket of 5 4.00 hood con Costs other than taxes are expected to be $ 30,20500 plus 17 of Sales Variable cost The project would have an initial NOW requirement of 5 4,763.00 which would be returned in year NOWC Fairways will have a combined Federal State tax rate of 25% and has a WACC of 16% WACC Complete the following table as wo 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 10205 0.1% 4763 0.16 Complete the following table as we illustrated in class and compute the project's NPV, TRR, MIRR, and Payback. Make a recommendation regarding whether or not the company should take on the project or not 0 1 2 3 4 5 6 6 Purchase Price 7 Taxes Saved 8 increase in NOWC 9 Total Cash Flow 0 Sales 1 Costs 2 Taxable income 3 Tax 04 Operating Cash Flow 25 Selling Price 26 Basis 17 Gain on Sale 28 Tax 29 After Tax Cash Flow 30 Return of NOWC 31 Total Cash Flows 32 NPV 33 IRR 34 MIRR 35 Cumulative 36 Payback The following information pertains to Fairways Driving Range, the Value 72541 19760 The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will need to purchase Item ball dispensing machine a ball pick up vehicle, and a tractor and necessories for a total cost of S 72,541.00 Equipment Cost All of this depreciable equipment will be immediately fully deprecated using bonus depreciation nuckets sold 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 Bucket Price Fairways expects to have sales of 19,760 buckets of balls per year at a price per bucket of 5 4.00 hood con Costs other than taxes are expected to be $ 30,20500 plus 17 of Sales Variable cost The project would have an initial NOW requirement of 5 4,763.00 which would be returned in year NOWC Fairways will have a combined Federal State tax rate of 25% and has a WACC of 16% WACC Complete the following table as wo 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 10205 0.1% 4763 0.16 Complete the following table as we illustrated in class and compute the project's NPV, TRR, MIRR, and Payback. Make a recommendation regarding whether or not the company should take on the project or not 0 1 2 3 4 5 6 6 Purchase Price 7 Taxes Saved 8 increase in NOWC 9 Total Cash Flow 0 Sales 1 Costs 2 Taxable income 3 Tax 04 Operating Cash Flow 25 Selling Price 26 Basis 17 Gain on Sale 28 Tax 29 After Tax Cash Flow 30 Return of NOWC 31 Total Cash Flows 32 NPV 33 IRR 34 MIRR 35 Cumulative 36 Payback