The owners of Tamarisk de Trois-Rivires hockey club are considering a deal with an older, established club whereby they can acquire the services of Pierre Sandhill, a very high scorer and great gate attraction, in exchange for Thomas Anderson (currently paid $16,500 annually). The established club would also receive $550,000 cash from Tamarisk. The owners' accountants have assembled the following data: Estimated useful life of Sandhill Estimated residual value of Sandhill 5 years $22,000 Estimated useful life of Anderson 5 years Estimated residual value of Anderson Current cash offer for Anderson received from another club Applicable desired rate of return None $55,000 10% Other information: Additional Gate Receipts Because of Sandhill Additional Expenses of Handling Higher Year Sandhill's Salary $66.000 $363,000 Volume $36,300