subject
Business, 23.12.2019 20:31 mcclendoncassandra

The management of an amusement park is considering purchasing a new ride for $85,000 that would have a useful life of 10 years and a salvage value of $10,500. the ride would require annual operating costs of $34,500 throughout its useful life. the company's discount rate is 9%. management is unsure about how much additional ticket revenue the new ride would generate-particularly since customers pay a flat fee when they enter the park that entitles them to unlimited rides. hopefully, the presence of the ride would attract new customers. (ignore income taxes.)

required: how much additional revenue would the ride have to generate per year to make it an attractive investment?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 17:50
When borrowers want funding to pay for different projects, they go to the loanable funds market and acquire funds through either indirect finance or direct finance. below, you are given five different scenarios. is each an example of direct finance or indirect finance?
Answers: 2
question
Business, 21.06.2019 23:30
Consider the following scenarios. use what you have learned to decide if the goods and services being provided are individual, public, or merit goods. for each case, state what kind of good has been described and explain your answer using the definitions of individual, public, and merit goods. (6 points each) 1. from your window, you can see a city block that's on fire. you watch city firefighters rescue people and battle the flames to save the buildings. 2. while visiting relatives, you learn that your cousins attend a nearby elementary school that is supported financially by local property tax revenue. 3. you see a squadron of military jets flying overhead. 4. you find out that your aunt works for a defense manufacturing company that has several defense contracts with the government. she tells you that she works for a team that is producing a communications satellite. 5. your class visits a local jail run by a private, profit-making company that detains county criminals and is paid with tax revenue.
Answers: 1
question
Business, 22.06.2019 12:30
land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)
Answers: 1
question
Business, 22.06.2019 16:10
The brs corporation makes collections on sales according to the following schedule: 30% in month of sale 66% in month following sale 4% in second month following sale the following sales have been budgeted: sales april $ 130,000 may $ 150,000 june $ 140,000 budgeted cash collections in june would be:
Answers: 1
You know the right answer?
The management of an amusement park is considering purchasing a new ride for $85,000 that would have...
Questions
question
Physics, 02.10.2019 20:30
question
Mathematics, 02.10.2019 20:30
question
Mathematics, 02.10.2019 20:30
question
Mathematics, 02.10.2019 20:30
question
Mathematics, 02.10.2019 20:30