Essay
The owner of an amusement park is considering installing a new ride.The ride would cost $20,000,produce a net cash flow of $2,500 annually,and last for nine years.
a.Assuming an interest rate of 10 percent,what is the present value of the net cash flows expected from the ride? Use future value and/or present value tables in calculating your answer.Round amounts to the nearest dollar.
b.Should the ride be purchased?
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a.$14,398 [($2,500 *...View Answer
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