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Blossom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Blossom would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Blossom can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $303,000 Cost to build soccer fields, dorm, and dining facility $606,000 Annual cash inflows assuming 150 players and 8 weeks $929,200 Annual cash outflows $848,400 Estimated useful life 20 years Salvage value $1,515,000 Discount rate 8% Click here to view PV table. SL

Blossom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Blossom would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Blossom can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $303,000 Cost to build soccer fields, dorm, and dining facility $606,000 Annual cash inflows assuming 150 players and 8 weeks $929,200 Annual cash outflows $848,400 Estimated useful life 20 years Salvage value $1,515,000 Discount rate 8% Click here to view PV table. SL

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blossom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Blossom would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Blossom can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $303,000 Cost to build soccer fields, dorm, and dining facility $606,000 Annual cash inflows assuming 150 players and 8 weeks $929,200 Annual cash outflows $848,400 Estimated useful life 20 years Salvage value $1,515,000 Discount rate 8% Click here to view PV table. SL
Transcribed Image Text:Blossom Corp. is thinking about opening a soccer camp in southern California. To start the camp, Blossom would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Blossom can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $303,000 Cost to build soccer fields, dorm, and dining facility $606,000 Annual cash inflows assuming 150 players and 8 weeks $929,200 Annual cash outflows $848,400 Estimated useful life 20 years Salvage value $1,515,000 Discount rate 8% Click here to view PV table. SL
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