12 An analyst has created estimates for a new Putt Putt course near the local elementary school The course will require an investment (building and equipment) at year 0 of $183,879 00 This amount can be depreciated over 5 years using the straight line approach The building can be sold for an NSV of $49,009 00 in year 5 The entrepreneur needs help estimating the cash flows for the business 0 1 2 3 4 5 Sales $67,588 00 $67,588 00 $67,588 00 $67,588 00 $67,588 00 Expenses $30,000 00 $30,000 00 $30,000 00 $30,000 00 $30,000 00 Depreciation $36,775 80 $36,775 80 $36,775 80 $36,775 80 $36,775 80 Investment in NWC $1,299 00 $0 $0 $0 $0 The investor wants an 10 00 return on the investment and the firm faces a 34 00 tax rate What is the NPV of this project Answer format Currency Round to 2 decimal places

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Question: #12 An analyst has created estimates for a new Putt Putt course near the local elementary school. The course will require an investment (building and

#12

An analyst has created estimates for a new Putt Putt course near the local elementary school. The course will require an investment (building and equipment) at year 0 of $183,879.00. This amount can be depreciated over 5 years using the straight-line approach. The building can be sold for an NSV of $49,009.00 in year 5. The entrepreneur needs help estimating the cash flows for the business.

	0	1	2	3	4	5
Sales		$67,588.00	$67,588.00	$67,588.00	$67,588.00	$67,588.00
Expenses		$30,000.00	$30,000.00	$30,000.00	$30,000.00	$30,000.00
Depreciation		$36,775.80	$36,775.80	$36,775.80	$36,775.80	$36,775.80
Investment in NWC		$1,299.00	$0	$0	$0	$0

The investor wants an 10.00% return on the investment and the firm faces a 34.00% tax rate.

What is the NPV of this project?

Answer format: Currency: Round to: 2 decimal places.

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