The managers in Disneyland are thinking about investing of $750,000 in ticket
Question: The managers in Disneyland are thinking about investing of $750,000 in ticket
The managers in Disneyland are thinking about investing of $750,000 in ticket purchasing machines at several theme parks. It is expected that those machines can work functionally in four years. Around 55, 000 tickets may be sold on those machines per year with unite price of $39. As for the cots there are $410, 000 per year for fixed costs and $25 for variable costs when every ticket is sold. Using the SL method, those machines are with a zero salvage value when they are depreciated. The onetime commitment of working capital is expected to be 1/10 of annual sales dollars. (Remember, working capital is money spent at time zero and returned at the end of the project. It is a cash flow, but has no tax effects.)
The after-tax PW of this proposed investment is $——– thousand. (Round to the nearest whole number.)
The investment to be————— made.
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