Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. valley club is considering adding a miniature golf

Valley Club is considering adding a miniature golf course to its facility. The course would cost...

70.2K

Verified Solution

Question

Finance

  1. Valley Club is considering adding a miniature golf course to itsfacility. The course would cost $44,000, would be depreciated on astraight-line basis over its 4-year life, and would have a zerosalvage value. The estimated income from the golfing fees would be$33,000 a year with $9,000 of that amount being variable cost. Thefixed cost would be $6,200. The project will require $3,000 of networking capital, which is recoverable at the end of the project.What is the net present value of this project at a discount rate of12 percent and a tax rate of 20 percent?

    $2,152.90

    $8,734.16

    $4,840.58

    $6,412.69

Answer & Explanation Solved by verified expert
4.1 Ratings (575 Votes)
INITIAL    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the mean, median, and mode of the datai. Mean:ii. Median:iii. Mode:iv. Which measure of...

Algebra
Q

Southwest Sands currently has 25,500 shares of stock outstanding. It is considering issuing $149,000 of debt...

Finance
Q

Describe all the steps necessary to determine the Miller indices for a given plane. Use a...

Mechanical Engineering
Q

E Method 20 4 F Method X A 77 11 S 00 8 B T

Geometry
Q

A young couple wants to have a college fund that will pay $25,000 at the...

Basic Math
Q

Problem 1- Gross estate, tangibles and intangibles, life insurance, claims against insolvent...

Accounting
Q

Using the information that follows, compute the total standard Unit costs of product WW+ Direct...

Accounting
Q

When a sales return is recorded in the general journal, the transaction must be posted...

Accounting
Q

(Identifying incremental revenues from new product innovations) Morten Food Products, Inc. is a regional manufacturer...

Finance
Q

2. An overview of a firm's cost of debt The is the interest rate that...

Finance
Q

You make a deposit into your bank account today. The amount is sufficient for you...

Finance
Q

Suppose the following information is avalable for Callaway Golf Company for the years 2025 and...

Finance