Question: Outdoor Sports is considering adding a putt - putt golf course to its facility. The course would cost $ 1 6 6 , 0 0
Outdoor Sports is considering adding a puttputt golf course to its facility. The course would cost $ would be depreciated on a straightline basis over its year life, and would have a zero salvage value. The sales would be $ a year, with variable costs of $ and fixed costs of $ In addition, the firm anticipates an additional $ in revenue from its existing facilities if the putt putt course is added. The project will require $ 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 percent and a tax rate of percent?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
