Week 4 Assignment – Planning for Capital Investments Overview Determining

Week 4 Assignment – Planning for Capital Investments Overview Determining the viability of a long-term capital investment 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] 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 to 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 $300,000 Facilities $600,000

Annual Cash Flow (150 total yearly players’ fees) $920,000 Annual Cash Outflows $840,000 Estimated Useful Life of Facilities 20 years Facilities Salvage Value $1,500,000 Discount Rate 8% This course requires the use of Strayer Writing Standards. For assistance and

information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. 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.