Outdoor Sports is considering adding a miniature golf course to its facility. The course would cost $138,000, would be depreciated on a straight line basis over its 5-year life, and would have a zero salvage value. The estimated income from the golfing fees would be $72,000 a year with $24,000 of that amount being variable cost. The fixed cost would be $11,600. In addition, the firm anticipates an additional $14,000 in revenue from its existing facilities if the golf course is added. The project will require $3,000 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 34 percent? $11,309 $11,628 $12,737 $14,439 $14,901
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Just have a question. Do you also provide help in understanding a concept? Not an assignment but for my learning. If certain concepts in the book are not clear, can you provide a simplified explanation of it using math that's understandable? You can charge the equivalent of an assignment.
Some things in the chapter attachments I sent you are not clear. They do not have much solved examples either.
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