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Outdoor Sports is considering adding a putt putt golf course toits facility. The course would cost $179,000, would be depreciatedon a straight-line basis over its 6-year life, and would have azero salvage value. The sales would be $90,000 a year, withvariable costs of $28,000 and fixed costs of $12,600. In addition,the firm anticipates an additional $20,100 in revenue from itsexisting facilities if the putt putt course is added. The projectwill require $3,200 of net working capital, which is recoverable atthe end of the project. What is the net present value of thisproject at a discount rate of 14 percent and a tax rate of 40percent?$19,077$51,022$29,562$27,820$31,020
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