Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $188,000, would be depreciated on a straight-line basis over its 6-year life, and would have a zero salvage value. The sales would be $94,500 a year, with variable costs of $28,450 and fixed costs of $13,050. In addition, the firm anticipates an additional $23,700 in revenue from its existing facilities if the putt putt course is added. The project will require $3,650 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 13 percent and a tax rate of 40 percent? Multiple Choice ○ $69,224 ○ $46,070 ○ $44,173 ○ $12,672 ○ $47,823
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- Chadron Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight-line basis over its five-year life, and would have a zero salvage value. The estimated income from the golfing fees would be $72,000 a year with $24,000 of that amount being variable cost. The fixed cost would be $11,600. In addition, the firm anticipates an additional $14,000 in revenue from its existing facilities if the golf course is added. The project will require $7,000 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 12 percent and a tax rate of 34 percent? O $14,438.78 $12,708.48 O $11,757.49 O $10,631.16 O $14,900.41NikulOutdoor Sports is considering adding a putt-putt golf course to its facility. The course would cost $168,000, would be depreciated on a straight-line basis over its 4-year life, and would have a zero salvage value. The sales would be $90,300 a year, with variable costs of $27,450 and fixed costs of $12,050. In addition, the firm anticipates an additional $15,700 in revenue from its existing facilities if the putt putt course is added. The project will require $2,650 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 11 percent and a tax rate of 21 percent?
- Outdoor Sports is considering adding a putt-putt golf course to its facility. The course would cost $184,000, would be depreciated on a straight-line basis over its 5-year life, and would have a zero salvage value. The sales would be $92,500 a year, with variable costs of $28,250 and fixed costs of $12,850. In addition, the firm anticipates an additional $22,100 in revenue from its existing facilities if the putt putt course is added. The project will require $3,450 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 13 percent and a tax rate of 21 percent? Multiple Choice $29,338 $66,590 ↓Fun Land is considering adding a miniature golf course to its facility. The course would cost $75000, would be depreciated on a straight line basis over its 4-year life, and would have a zero salvage value. The estimated income from the golfing fees would be $40000 a year with $12000 of that amount being variable cost. The fixed cost would be $6000. In addition, the firm anticipates an additional $15000 in revenue from its existing facilities if the course is added. The project will require $7000 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 12 percent and a tax rate of 35 percent? $19,812.09 $20,360.22 $15,429.48 $13,199.40 $24,738.41Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $179,000, would be depreciated on a straight-line basis over its 4-year life, and would have a zero salvage value. The sales would be $93,500 a year, with variable costs of $28,350 and fixed costs of $12,950. In addition, the firm anticipates an additional $22,900 revenue from its existing facilities if the putt putt course added. The project will require $3,550 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 11 percent and a tax rate of 34 percent?
- The golf range is considering adding an additional driving range to its facility. The range would cost $229000 would be depreciated on a straight line basis over its seven year life, and would have a zero salvage value. The anticipated revenue from the project is $62500 a year with $18400 of that amount being variable cost. The fixed cost would be $15700. The firm believes that it will earn an additional $22500 a year from its current operations should the driving range be added. The project will require $3000 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 21 percent?Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $169000, would be depreciated on a straight-line basis over its 4-year life, and would have a $62500 saivage value. The sales would be $93,500 a year, with costs of $28,350. The project will require $3,550 of net working capital, which is recoverable at the end of the project. Estimate the free cash flows for the project for years 0, 1, 2, 3, and 4 if the tax rate is 17%.Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight-line basis over its five-year life, and would have a zero salvage value. The estimated income from the golfing fees would be $72,000 a year. The cost would be $35,600. The tax rate is 21 percent. What is the operating cash flow for this project? $8,800 $34,522 $6,952 $36,400
- Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $177,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $114,000, variable costs of $30,100, and fixed costs of $12,400. The project will also require net working capital of $3,000 that will be returned at the end of the project. The company has a tax rate of 35 percent and the project's required return is 8 percent. What is the net present value of this project?Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $195,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $132,000, variable costs of $35,500, and fixed costs of $12,85O. The project will also require net working capital of $3,450 that will be returned at the end of the project. The company has a tax rate of 21 percent and the project's required return is 12 percent. What is the net present value of this project? Multiple Choice $22,256 $20,716 $37,403 $25,053 $18,989Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $189,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $126,000, variable costs of $33,700, and fixed costs of $12,700. The project will also require net working capital of $3,300 that will be returned at the end of the project. The company has a tax rate of 21 percent and the project's required return is 9 percent. What is the net present value of this project? ASAP, PLEASE