Business, 23.12.2019 20:31 mcclendoncassandra

The management of an amusement park is considering purchasing a new ride for $85,000 that would have a useful life of 10 years and a salvage value of $10,500. the ride would require annual operating costs of $34,500 throughout its useful life. the company's discount rate is 9%. 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. (ignore income taxes.)

required: how much additional revenue would the ride have to generate per year to make it an attractive investment?

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The management of an amusement park is considering purchasing a new ride for $85,000 that would have...