Outdoor Sports Is Considering Adding a Miniature Golf Course to Its

Outdoor Sports is considering adding a miniature golf course to its facility.The course would cost $138,000,would be depreciated on a straight-line basis over its five-year life,and would have a zero salvage value.The estimated income from the golfing fees would be $72,000 a year with $24,000 of that amount being variable cost.The fixed cost would be $11,600.In addition,the firm anticipates an additional $14,000 in revenue from its existing facilities if the golf course is added.The project will require $3,000 of net working capital,which is recoverable at the end of the project.What is the net present value of this project at a discount rate of 12 percent and a tax rate of 34 percent?

A) $11,309
B) $11,628
C) $12,737
D) $14,439
E) $14,901