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Business, 13.08.2020 21:01 Kriszzznizzle

The owner of a ski resort is considering installing a new ski lift that will cost $. Expenses for operating and maintaining the lift are estimated to be $ per day when operating. The U. S.Weather Service estimates that there is a % probability of days of skiing weather per year, a % probability of days per year, and a % probability of days per year. The operators of the resort estimate that during the first days of adequate snow in a season, an average of people will use the lift each day, at a fee of $ each. If additional days are available, the lift will be used by only people per day during the extra period; and if more days of skiing are available, only people per day will use the lift during those days. The owners wish to recover any invested capital within years and want at least a % per year rate of return before taxes. Based on a before-tax analysis, should the lift be installed?

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