William Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage butiness. He estimates the construction of a stateoftheart building and the purchase of necessary equipment will cost $ Both the facility and the equipment will be depreciated over years using the straightline method and are expected to have zero salvage values. His required rate of retum is present value factor of Estimated arnual ret income is as follow:
Revenue
$
Les:
tableUtility cost$Supplies$LaborDepreciationOtherNet income,,
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For this imvestment, calculate:
a
Vour answer is incorrect.
The net present value. For caloulotion purposes, use decinal places as disployed in the factor table provided. Round answer to decimal places, es
Net present value
Attempts: of used
b
The intemal rate of retum use the above table.Round answer to O decinal pilaces, es
Internal rate of return
