very successful health and recreation club wants to construct mock mountain for Climbing and exercise outside for its customers use. Because of its ocation, there is a 35% chance of a 120-day season of good outdoor weather, a 45% chance of a 150-day season, and a 20% chance of a 165-day season. he mountain will be used by an estimated 325 persons each day of the 4-month (120-day) season, but by only 100 per day for each extra day the season sts. The feature will cost $435,000 to construct and require a $20,000 rework every 4 years, and the annual maintenance and insurance costs will be 54,000. The climbing fee will be $4 per person. If a life of 12 years is anticipated and a 10% return is expected,what is the NPV of this project?

very successful health and recreation club wants to construct mock mountain for Climbing and exercise outside for its customers use. Because of its ocation, there is a 35% chance of a 120-day season of good outdoor weather, a 45% chance of a 150-day season, and a 20% chance of a 165-day season. he mountain will be used by an estimated 325 persons each day of the 4-month (120-day) season, but by only 100 per day for each extra day the season sts. The feature will cost $435,000 to construct and require a $20,000 rework every 4 years, and the annual maintenance and insurance costs will be 54,000. The climbing fee will be $4 per person. If a life of 12 years is anticipated and a 10% return is expected,what is the NPV of this project?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2TP: Austins cell phone manufacturer wants to upgrade their product mix to encompass an exciting new...

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