Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. outdoor sports is considering adding a putt putt g

Outdoor Sports is considering adding a putt putt golf course to its facility. The course...

90.2K

Verified Solution

Question

Finance

image

Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $176,000, would be depreciated on a straight-line basis over its 6-year life, and would have a zero salvage value. The sales would be $88,500 a year, with variable costs of $27,850 and fixed costs of $12,450. In addition, the firm anticipates an additional $18,900 in revenue from its existing facilities if the putt putt course is added. The project will require $3,050 of net working capital, which is recoverable at the end of the project. What is the net present value of this project at a discount rate of 14 percent and a tax rate of 40 percent? Multiple Choice 0 $26,185 0 $47,338 0 $19,573 0 $27,574

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

I have to write about serotonin - I should talk about its synthesis- (physiologic mechanisms and drugs...

Biology
1.2K views

Draw a workflow of the original Sanger Sequencing and explain how the automated Sanger method is...

Biology
1.2K views

12pt V Paragraph V BI 4 themes of gene expression Epigenetic Transcriptional IC

Biology
1.2K views

Calculate the molecular mass M W of the following Include units for full credit CO...

Statistics
1.2K views

the amount of time it takes a mechanic to rebuild the transmission for a 2010...

Calculus
1.2K views

The interval in which the function f given by, f(x) = x - 4x +...

Algebra
1.2K views

A can is in the shape of a right circular cylinder. The circumference of the...

Accounting
1.2K views

165 orders of 4,125 plastic housing units per year. Required: 1. Compute the...

Accounting
1.2K views

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76...

Accounting
1.2K views

Analyzing and Interpreting Pension and Health Care Footnote Xerox reports the following pension and retiree...

Accounting
1.2K views

You are in the State of California. Person A leases Land to Person B. Person...

Accounting
1.2K views

Adjustment for Unearned Revenue On June 1, 20Y2, Monarch Co. received $38,320 for the rent...