1. You own a hotel and are considering adding a golf simulator for your guests to enjoy. You believe that the cost of the simulator will be offset by increased rates that your hotel can charge. If you have an 8% discount rate. What is the project's NPV?

   Year	Cash flow from the Golf Simulator
   0	($34,000)
   1	6,000
   2	12,000
   3	31,000

   		3,836.71
   		6,452.42
   		7,631.36
   		8,484.03
   		9,549.56

10 points

QUESTION 26

1. The Indian Football Association just purchased a new ticket management system at a cost of $14,800. The hope is that fans will be able to buy there tickets for upcoming games more quickly and easily. Cost savings from the investment over the next three years will produce the following cash inflows: Year 1- $6,700, Year 2- $8,900, Year 3- $1,900. What is the project's payback?

   		1.69 years
   		1.77 years
   		1.91 years
   		2.30 years
   		2.32 years