Question: Outdoor Sports is con'sidering adding a putt putt golf course to its facility. The course would cost $179,000, would be depreciated on a straight-line basis

Outdoor Sports is con'sidering adding a putt putt golf course to its facility. The course would cost $179,000, would be depreciated on a straight-line basis over its 6 -year life, and would have a zero salvage value. The sales would be $90,000 a year, with variable costs of $28,000 and fixed costs of $12,600. In addition, the firm anticipates an additional $20,100 in revenue from its existing facilities if the putt putt course is added. The project will require $3,200 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 14 percent and a tax rate of 25 percent? Multiple Choice : $54,158 $108,964 $50,958 $7.664 $52.700
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