*Your wer is incorrect Bonita Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $119,000 and have an estimated useful ide of 5 years. The park will sell it for $61.200 at that time. (Amnement 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 8 ts cost of capital is 10% Calculate the net present value of this project to the company of the net present value is negative, une either a negative sign preceding the ad in the factor table provided, eg 1.25124 number eg-45 or parentheses g (45) For calculation purposes, use 5 decimal places e Round present velue answer to 0 decimal places 125) Net present value 647 SUPPORT
*Your wer is incorrect Bonita Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $119,000 and have an estimated useful ide of 5 years. The park will sell it for $61.200 at that time. (Amnement 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 8 ts cost of capital is 10% Calculate the net present value of this project to the company of the net present value is negative, une either a negative sign preceding the ad in the factor table provided, eg 1.25124 number eg-45 or parentheses g (45) For calculation purposes, use 5 decimal places e Round present velue answer to 0 decimal places 125) Net present value 647 SUPPORT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
G
Transcribed Image Text:* Your awer is incorrect.
Bonita Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost
$119,000 and have an estimated useful life of 5 years. The park will sell it for $61.200 at that time. (Amunement 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 Rs cost of capital is 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, une either a negative sign preceding the
number eg-45 or parentheses eg (45) For calculation purposes, une 5 decimal places as displayed in the factor table provided, eg 1.25124
Round present value answer to O decimal places, eg 125)
Net prevent value
Hull
647
SUPPORT
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education