The Salt Lake City Park Commission is considering outsourcing little league sports on a 4...
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Accounting
The Salt Lake City Park Commission is considering outsourcing little league sports on a 4 year contractual basis. Your company is considering undertaking the project. Below are the cash flow estimates for the next 4 years.
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| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | -$1,800 | $850 | $850 | $700 | -$200 |
a) Determine the project's NPV and advise management to accept or reject the project if you have are using your companys WACC of 7.25%.
b) Determine the project's NPV and advise management to accept or reject the project if you have determined the project specific WACC is 12.00%.
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