Question: The company is considering operating a new driving range facility in Sanford, fl. In order to do so, they will need to purchase a ball dispensing machine, a ball pick-up vehicle and a tractor and accessories for a total cost of $100,000. All of this depreciable equipment will be 7-year MACRS property. The project is expected to operate for 6 years, at the end of which the equipment will be sold for 25% of its original cost. Fairways expects to have %30,000 of fixed costs each year other than depreciation. These fixed costs include the cost of leasing the land for the driving range.
What is the OFC, WACC, Present Value, NPV, Financial Ratio, and final analysis?