Question: Help Save & Exit Submit Outdoor Sports is considering adding a putt-putt golf course to its facility. The course would cost $171,000, would be depreciated
Help Save & Exit Submit Outdoor Sports is considering adding a putt-putt golf course to its facility. The course would cost $171,000, would be depreciated on a straight-line basis over its 4-year life, and would have a zero salvage value. The sales would be $98,400 a year, with variable costs of $27,900 and fixed costs of $12,500. In addition, the firm anticipates an additional $19,300 in revenue from its existing facilities of the putt putt course is added. The project will require $3,100 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 15 percent and a tax rate of 21 percent? Multiple Choice O O $16,152 $21.542 MAL
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