Coolplay Corp. is thinking about opening a soccer camp in
southern California. To start the camp, Coolplay would need to
purchase land and build four soccer fields and a sleeping and
dining facility to house 150 soccer players. Each year, the camp
would be run for 8 sessions of 1 week each. The company would hire
college soccer players as coaches. The camp attendees would be male
and female soccer players ages 12–18. Property values in southern
California have enjoyed a steady increase in value. It is expected
that after using the facility for 20 years, Coolplay can sell the
property for more than it was originally purchased for. The
following amounts have been estimated.
Cost of land | $312,000 | ||
Cost to build soccer fields, dorm and dining facility | $624,000 | ||
Annual cash inflows assuming 150 players and 8 weeks | $956,800 | ||
Annual cash outflows | $873,600 | ||
Estimated useful life | 20 years | ||
Salvage value | $1,560,000 | ||
Discount rate | 8% |
Calculate the net present value of the project. (If
the net present value is negative, use either a negative sign
preceding the number e.g. -45 or parentheses e.g. (45). Round
answer to 0 decimal places, e.g. 125. For
calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
Net present value $
Should the project be accepted?
The project
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Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp,...
Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp, Coolplay would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12–18. Property values in southern California have enjoyed...
unting Sales Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp, Coolplay would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college Soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California...
Coolplay Corp is thinking about opening a soccer camp in southern California. To start the camp, Coolplay would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed...
king about opening a soccer camp in southern California. To start the camp, Coolplay would need to purchase land and build Coolplay Corp. is thi four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern Calfornia have...
Coolplay Corp. is thinking about opening a soccer camp in southern California. To start the camp, Coolplay would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12–18. Property values in southern California have enjoyed...
Objectives: At the end of this activity, the students are expected to have been able to: 1. Define capital budgeting, explain why it is important, differentiate between security valuation and capital budgeting, and state how project proposals are generally classified. 2. Calculate net present value (NPV) and internal rate of return (IRR) for a given project and evaluate each method. 3. Define NPV profiles, the crossover rate, and explain the rationale behind the NPV and IRR methods, their reinvestment rate...
I have this case study to solve. i want to ask which type of case study in this like problem, evaluation or decision? if its decision then what are the criterias and all? Stardust Petroleum Sendirian Berhad: how to inculcate the pro-active safety culture? Farzana Quoquab, Nomahaza Mahadi, Taram Satiraksa Wan Abdullah and Jihad Mohammad Coming together is a beginning; keeping together is progress; working together is success. - Henry Ford The beginning Stardust was established in 2013 as a...