Question: 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)

 An analyst has created estimates for a new Putt Putt course

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 $173,108.00. This amount can be depreciated over 5 years using the straight-line approach. The building can be sold for an NSV of $40,258.00 in year 5. The entrepreneur needs help estimating the cash flows for the business. 5 $68,480.00 $68,480.00 $68,480.00 $68,480.00 $68,480.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $34,621.60 $34,621.60 $34,621.60 $34,621.60 $34,621.60 $0 2 4 Sales Expenses Depreciation Investment in NWC $1,045.00 $0 $0 $0 The investor wants an 8.00% return on the investment and the firm faces a 34.00% tax rate. What is the NPV of this project

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!