A movie theatre is considering the purchase of a new digital projection system (each showing is as

Question:

A movie theatre is considering the purchase of a new digital projection system (each showing is as perfect as when it was first filmed). The new ticket price per person would be $7.50, which is $1.00 higher than for the traditional cellulose film projection system. The new projection system would cost $50,000.
a. If the theatre expects to sell 20,000 tickets per year, how many years (as an integer) will it take for the theatre to recover the $50,000 investment of the new system (i.e., what is the simple What is the discounted (as an integer) if is 20% per year?
c. If the digital system has a life of five years and a of $5,000 at that time, what is the IRR of the new system?
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