The Golf Range is considering adding an additional driving range to its facility. The range would cost $76,000, would be depreciated on a straight line basis over its 7-year life, and would have a zero salvage value. The anticipated income from the project is $34,000 a year with $14,400 of that amount being variable cost. The fixed cost would be $16,200. The firm believes that it will earn an additional $13,000 a year from its current operations should the driving range be added. The project will require $2,000 of net working capital, which is recoverable at the end of the project. What is the internal rate of return on this project at a tax rate of 34 percent? 7.53 percent 9.29 percent 11.47 percent 12.68 percent 14.04 percent
This is excellent! I am impressed at the quality of the work. Would it be OK if I send you a list of minor changes to be made in early March? You can then provide me quote and I will pay for the requested changes.