Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $185.000, would be depreciated on a straight - line basis over its 6-year life, and would have a zero salvage value. The sales would be $90, 500 a year, with variable costs of $28, 300 and fixed costs of $12,900. In addition, the firm anticipates an additional $22, 500 in revenue from its existing facilities if the putt putt course is added. The project will require $3,500 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 21 perecent? multiple choice: A:73, 102 B:44, 600 C66, 454 D42,827 E14,404

Outdoor Sports is considering adding a putt putt golf course to its facility. The course would cost $185.000, would be depreciated on a straight - line basis over its 6-year life, and would have a zero salvage value. The sales would be $90, 500 a year, with variable costs of $28, 300 and fixed costs of $12,900. In addition, the firm anticipates an additional $22, 500 in revenue from its existing facilities if the putt putt course is added. The project will require $3,500 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 21 perecent? multiple choice: A:73, 102 B:44, 600 C66, 454 D42,827 E14,404

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 13P

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