Current Attempt in Progress

Bramble Corp. is thinking about opening a baseball camp in Florida. In order to start the camp, the company would need to purchase land, build five baseball fields, and a dormitory$-$type sleeping with a dining facility to house $100$ players. Each year the camp would be run for $10$ sessions of $1$ week each. The company would hire college baseball players as coaches. The camp attendees would be baseball players age $12-18.$ Property values in Florida have enjoyed a steady increase in value. It is expected that after using the facility for $20$ years, Bramble can sell the property for more than the amount for which it was originally purchased. The following amounts have been estimated:

Click here to view PV tables. Calculate the net present value of the project. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided.

Round answer to $0$ decimal places, e$.$g$.5,275.)$

Net present value $\backslash$$

$($b$1)$

To gauge the sensitivity of the project to these estimates, assume that if only $80$ campers attend each week, revenues will be $\backslash (\backslash$$ $2,110,000\backslash )$ and expenses will be $\backslash (\backslash$$ $1,886,500\backslash ).$ What is the net present value using these alternative estimates? $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Round answer to $0$ decimal places, e$.$g$.5,275.)$

Net present value $\backslash$$

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$($c$)$

Assuming the original facts, what is the net present value if the project is actually riskier than first assumed, and a $\backslash (12\backslash \%\backslash )$ discount rate is more appropriate? The present value of $1$ at $\backslash (12\backslash \%\backslash )$ is $0\mathrm{.}10367$ and the present value of an annuity of $1$ is $7\mathrm{.}46944.($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Round answer to $0$ decimal places, e$.$g$.5,275.)$