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Marge's Campground is considering adding a miniature golf course to its facility. The course she...

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Finance

Marge's Campground is considering adding a miniature golf course to its facility. The course she wants would cost $30,000, would be depreciated on a straight line basis over the 4-year life of the course, and would have zero salvage value. Marge estimates the income from the golf fees would be $28,000 a year with $10,000 of that amount being variable cost. The fixed cost would be $5,000. Marge feels that the course would net her, after costs, an additional $10,000 in revenue from her existing facilities. The project will require $1,000 of net working capital which is recoverable at the end of the project. What is the internal rate of return on this project at a tax rate of 34 percent? a. 66.76 percent b. 44.35 percent c. 26.18 percent d. 21.19 percent e. 24.50 percent

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