Question: Fun Land is considering adding a miniature golf course to its facility. The course would cost $ 7 5 0 0 0 , would be

Fun Land is considering adding a miniature golf course to its facility. The course would cost $75000, 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 $40000 a year with $12000 of that amount being variable cost. The fixed cost would be $6000. In addition, the firm anticipates an additional $15000 in revenue from its existing facilities if the course is added. The project will require $7000 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 35 percent?
Group of answer choices
$20,360.22
$19,812.09
$24,738.41
$13,199.40
$15,429.48

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