he management of an amusement park is considering purchasing a new ride for P40,000 that would...
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he management of an amusement park is considering purchasing a new ride for P40,000 that would have a useful life of 15 years and a salvage value of P6,000. The ride would require annual operating costs of P22,000 throughout its useful life. The company's discount rate is 12%. 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. The additional revenue the ride have to generate per year to make it an attractive investment would amount to Group of answer choices P 12,583 P27,872 none of these P 27,712 he management of an amusement park is considering purchasing a new ride for P40,000 that would have a useful life of 15 years and a salvage value of P6,000. The ride would require annual operating costs of P22,000 throughout its useful life. The company's discount rate is 12%. 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. The additional revenue the ride have to generate per year to make it an attractive investment would amount to Group of answer choices P 12,583 P27,872 none of these P 27,712
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Answer 1Non of these would be the answer because Depr... View the full answer
Related Book For
The Legal Environment of Business A Critical Thinking Approach
ISBN: 978-0134074030
8th edition
Authors: Nancy K. Kubasek, Bartley A. Brennan, M. Neil Browne
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