Determining the viability of long-term capital investments is a fundamental aspect of corporate accounting. In this assignment, you use Excel to make and interpret specified calculations for a capital investment analysis that includes sensitivity and what-if analyses for a proposed football training facility.
Instructions
Read the following scenario and use the Week 4 Assignment Template [XLSX] Download Week 4 Assignment Template [XLSX]to complete this assignment.
Specific directions are included in the template. Make sure to complete all tabs for Parts 1 and 2 and follow the directions given in each.
Note that you must add functionality to the appropriate spreadsheets to make the proper calculations.
Scenario
Use the following scenario for your work:
Kicking It Corp. is planning to open a football camp in Arizona, which will require a land purchase and facilities development that includes fields, sleeping and dining facilities, maintenance equipment, and other capital expenditures. Each year, the camp will run for eight one-week sessions. The company will also incur operational expenses.
The estimates in the following table have been shared with company leadership and investors:
Estimated Figures
Item
Amount
Land$300,000Facilities$600,000Annual Cash Flow (150 total yearly players’ fees)$920,000Annual Cash Outflows$840,000Estimated Useful Life of Facilities20 yearsFacilities Salvage Value$1,500,000Discount Rate8%
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions.
The specific course learning outcome associated with this assignment is:
Create financial reports, charts, graphs, and what-if analyses using Excel.