Outdoor Sports is considering adding a putt putt golf course to its facility. The course...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $189,000, would be depreciated on a straight-line basis over its 5-year life, and would have a zero salvage value. The sales would be $95,000 a year, with variable costs of $28,500 and fixed costs of $13,100. In addition, the firm anticipates an additional $24,100 in revenue from its existing facilities if the putt putt course is added. The project will require $3,700 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 25 percent?
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.