Fun Land is considering adding a miniature golf course to its facility. The course would cost $68,000, 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 $48,000 a year with $7,500 of that amount being variable cost. The fixed cost would be $8,600. In addition, the firm anticipates an additional $12,000 in revenue from its existing facilities if the course is added. The project will require $4,000 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 8 percent and a tax rate of 25 percent?

$57,440.01

$27,062.94

$43,013.41

$35,673.96

$54,068.43