Golf Course

Good Essays
[pic]

Click www.ondix.com to visit our student-to-student file sharing network.

REVIEW OF FACTS

Rock Creek Golf Club is a public golf course owned by a private company and managed by Lee Jeffries. The case entails a debate about the golf carts used to take players around the course instead of walking around. The carts they already owned were old and there was a need for new golf carts.
Approached by two salesman, Lee Jeffries was forced to chose to make a deal with one of them. Salesman A offered carts at $2,240 each and at the end of five years the expected salvage value was going to be $240 each.
Salesman B proposed to lease the golf carts for $500 dollars per cart per year. This was payable at the end of the year for five years and the contract could be cancelled at any time with 90 days notice. This deal was easier to get out of.
Either way $420 dollars in costs per cart per year were expected and revenue of $84000 per year was expected.

EXECUTIVE SUMMARY

This case concerns whether to buy golf carts or lease golf carts. The financial implications are different based on the way the golf course acquires (buys or leases) use of the carts and on the terms used in acquiring them.
The questions posed in this case bring to light the answers that would tell an owner of a golf course presented with the terms for sale and the terms for lease of golf carts that he was presented with, what he should do.
We calculated what the interest payments would be each year if we paid for the golf carts each year for five years, and also the principal payment for each year. We also figured out what the interest rate would be for the lease of the carts with the terms that would presented. With this information available to us, along with the present values for each of the terms and options the owner of the golf course should be able to make an intelligent decision since the revenue and expenses for each option, that he expects to generate or incur,

You May Also Find These Documents Helpful

  • Good Essays

    Golf Course History

    • 458 Words
    • 2 Pages

    of a golf cart engine and the sounds of laughter filling the broad land surrounding you. Can you guess the environment you are in? Well surely, a golf course. Although most may not be aware that there is much time and effort added into creating a golf course, Cindi Norton knows first hand that there is extensive amounts of hard work that goes into a project like this. In 1968, Stub and Barbara Baker agreed to purchase 120 acres of cow pasture and forest to be transformed into a golf course with Ralph…

    • 458 Words
    • 2 Pages
    Good Essays
  • Good Essays

    half years, I have worked at a golf course, which goes by the name Tyrone Hills. A quote that I live by goes, “A dream doesn't become reality through magic; it takes sweat, determination and hard work” (Colin Powell). Working at a golf course has given me numerous benefits. For example, discounted golf equipment, and also free golf. But benefits are just a fraction of what you get while working at a golf course. Another important aspect of working at a golf course has been the responsibility that…

    • 758 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Golf Course Survey

    • 7064 Words
    • 29 Pages

    LEISURE AND TOURISM PRACTICE From North Cape to Cape Town KPMG Golf Course Development Cost Survey in the EMA Region KPMG IN CENTRAL AND EASTERN EUROPE Sponsored by: Penha Longa Golf Club Lisbon (Sintra), Portugal Designer: Robert Trent Jones II The credo of Robert Trent Jones II – “of the earth, for the spirit” – reflects the company's passion for golf and our commitment to the values of the game. We believe golf courses are places of tranquility, conviviality, and aesthetic beauty,…

    • 7064 Words
    • 29 Pages
    Powerful Essays
  • Satisfactory Essays

    Golf Course Architect

    • 154 Words
    • 1 Page

    Golf Course Architect Mitch Strickland 3/6/17 There are many people that were able to design a golf course. Some of the most popular are Jack Nicklaus, Arnold Palmer, Pete Dye, Donald Ross, Ben Crenshaw, Tom Fazio, Gary Player, and many more famous people. I think it is a great job where you can do something that you love. The level of education that you need is a Golf degree so that you know the rules on how to make a golf course, how to place bunkers or a green in, be able to get approved to…

    • 154 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    In golf, perhaps more than in any other game, the clothing has a great significance and we can even talk about a certain dress code. For this reason, whenever you go on the golf course, you have to be careful about your etiquette and respects the game's tradition. Golf is a sport of elegance and style, so you need to know how to dress in order to practice this game. Here is the proper way to dress on the golf course. Shirts Usually, the golf courses have certain requirements in what concerns the…

    • 507 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Golf Course SWOT Analysis

    • 967 Words
    • 4 Pages

    Bombay Presidency Golf Club (BPGC) Case Study • • • • • • • • Introduction Vision Mission Strategic Objectives External Relevant Factors Key Success Factors SWOT Analysis References BPGC Case Study Topics • Established in 1927 in city of Mumbai, under the name “The New Club Ltd.” • Has 18 holes over 6148 yards and a Par score of 70 • Underwent extensive redesign and modifications in 2009. Redesigned by world class designers Nelson & Haworth • Among the eleven water…

    • 967 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    the golf team at my school for four years. One of the most significant lessons that the game of golf taught me was to always have the desire to learn and better yourself. A person can never be done learning; there will always be new skills to learn and aged skills to improve upon. I love and value learning, and I believe that it is necessary to strive to be a life long learner. The golf course is my home during the fall season. I spend more time at practice, with my teammates, and on the golf course…

    • 662 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Scotch Pines Golf Course is located in Payette, Idaho. The course first opened in 1961 as only a 9-hole course and was designed by William Graham. In 1988, Robert Scott Masingill designed the back nine. Mr. Masingill continues to be an active member of the Scotch Pines community and currently serves on its board of directors. The course is open seven days a weeks, tee times starting as early as 7:00 am. It has 6,487 yards of grass for you to golf in with a 72 par. It is a four star course and is very…

    • 1347 Words
    • 6 Pages
    Good Essays
  • Good Essays

    2013 Decision Modeling Assignment: Golf Course Design CO 5124 Data Analysis & Decision Modeling Tutorial : B By Madhumita Srinivasan (12772343) Submitted to Dr.Eddie Chng 1 |CO5124 DATA ANALYSIS & DECISION MODELING INTRODUCTION Paradise Palm Golf Club, a well established golf club in Cairns, has planned to expand its operations by building a brand new golf course in Townsville. As the success of the golf course largely depends on the extent to which the users find it enjoyable, Future…

    • 1481 Words
    • 6 Pages
    Good Essays
  • Good Essays

    in. Others may view peacefulness as a quiet day with no worries and nowhere to be. Others still may think of peacefulness as a casual stroll through a park or garden. A day on the golf course combines all of these fantasies into one fantastic day that I look forward to on a daily basis. A day on the golf course always comes with a care-free feeling while strolling up and down hills and through trees, and most golfers also get to spend some time in the sand. Why this is so peaceful is a mystery…

    • 351 Words
    • 2 Pages
    Good Essays