x Your answer is incorrect Bonita Corporation, which operates an amusement park, is considering a capital...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
x Your answer is incorrect Bonita Corporation, which operates an amusement park, is considering a capital investment in a newride. The ride would cost $119,000 and have an estimated useful Me of 5 years. The park will sell it for $61,200 at that time. (Amusement parks need to rotate rides to keep people interested) The ride will be expected to increase net annual cash flows by $21.200. The company's borrowing rate is %s cost of capitalis 10% Click here to view the factor table Calculate the net present value of this project to the company. Of the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg 1.25124 Round present value answer to O decimal places, eg 125) Net present value SUPPORT x Your answer is incorrect Bonita Corporation, which operates an amusement park, is considering a capital investment in a newride. The ride would cost $119,000 and have an estimated useful Me of 5 years. The park will sell it for $61,200 at that time. (Amusement parks need to rotate rides to keep people interested) The ride will be expected to increase net annual cash flows by $21.200. The company's borrowing rate is %s cost of capitalis 10% Click here to view the factor table Calculate the net present value of this project to the company. Of the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg 1.25124 Round present value answer to O decimal places, eg 125) Net present value SUPPORT
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Derek and Wes take a photograph of a lake at the same angle and the same time of day. Derek's picture comes out with crisp edges around objects in the photo. Wes's picture seems to blur the outlines...
-
Caustic Chemicals management identified the following cash flows as significant in their year end meeting with analysts: During the year Caustic repaid existing debt of $312,080 and raised additional...
-
How has an entrepreneurial strategy and the management of innovation helped Dippin Dots establish its competitive edge? What challenges remain for the new ownership?
-
On December 31, 20X2, the accounting records of Zylar, Inc., show the following unit sales for 20X2. The following are additional actual amounts for the 4th quarter of 20X2. Management has...
-
Reporting Inventory at Lower of Cost or Market Jones Company is preparing the annual financial statements dated December 31, 2012. Ending inventory information about the five major items stocked for...
-
Suppose that in a certain large region region , the proportion of the adult population that owns a car is 0.12 . If 8 people are randomly and independently selected from the adult population in this...
-
What is perceptual constancy and how does it affect perception? What is perceptual set and how does it affect perception? What is signal detection theory? What is Webber's law? What are the rules of...
-
Reddy transfers land (fmv of $55,000 and basis of $15,000) for 45% of RBB Co and $10,000 cash. Bluey transfers a truck (fmv of $45,000 and basis of $50,000) for 45% of RBB Co. Bingo provides services...
-
Martinez Audio Visual Incorporated offers an incentive stock option plan to its regional managers. On January 1 , 2 0 2 4 , options were granted for 8 million $ 1 par common shares. The exercise...
-
Expedition Company worked on five jobs during May: Jobs A10, B20, C30, D40, and E50. At the end of May, the job cost sheets for these five jobs contained the following data: Job A10 Job B20 Job C30...
-
Pass the journal entries of the given transactions Event 1 3-Jan 2 Date 3 Description of Event Employees are paid monthly on the first business day of the month for work done in the previous month....
-
Bell Company produces stainless steel drink tumblers, Its only product. These tumblers are stamped with company logos and used as promotional items. Following are simplified job cost sheets for two...
-
A Northwest party products manufacturer has production facilities in Spokane, WA and Bangladesh. Both facilities have capacities of 1 million units each per year. The cost of production and...
-
The May 2014 revenue and cost information for Houston Outfitters, Inc. follow: Sales Revenue (at standard).............. $ 540,000 Cost of Goods Sold (at standard) ..........341,000 Direct Materials...
-
Billy Tushoes recently received an offer to join the accounting firm of Tick and Check LLP. Billy would prefer to work for Foot and Balance LLP but has not received an offer from the firm the day...
-
Telecommunications, Inc., is a U.S. company, a global leader in information technology, and it specializes in building data network systems. The company is a major player in the industry, although it...
-
At the 2009 U.S. Tennis Open, a line judge called a foot fault against Serena Williams, causing her to lose a point at a critical juncture of her championship match against the ultimate winner, Kim...
Study smarter with the SolutionInn App