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The Builder of a New Movie Theatre Complex Is Trying

Question 17

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The builder of a new movie theatre complex is trying to decide how many screens she wants.Below are her estimates of the number of patrons the complex will attract each year,depending on the number of screens available: The builder of a new movie theatre complex is trying to decide how many screens she wants.Below are her estimates of the number of patrons the complex will attract each year,depending on the number of screens available:   After paying the movie distributor and meeting all other non-interest expenses,the owner expects to net $2.00 per ticket sold.Construction costs are $1,000,000 per screen.How many screens should be built if the real interest rate is 7%? A)  1. B)  2. C)  3. D)  4. E)  5.
After paying the movie distributor and meeting all other non-interest expenses,the owner expects to net $2.00 per ticket sold.Construction costs are $1,000,000 per screen.How many screens should be built if the real interest rate is 7%?


A) 1.
B) 2.
C) 3.
D) 4.
E) 5.

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