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VLD [36.1K]
3 years ago
10

Angola United Theaters, Inc. is considering opening a new movie theater in Angola, Indiana. The relevant cost of capital is 8%.

The purchase, renovation, and modification of a downtown building would require an initial investment of $1.5 million. The theater is expected to be operational for 25 years. After 25 years, the property would be sold for $1 million. The annual operating cost is equal to $100,000 plus $2 per customer. The annual revenues are estimated at $15 per customer. Determine the minimum number of customers per year that would result in accepting the project. (Hint: use annualized worth and solve for the number of customers.)
Business
1 answer:
amm18123 years ago
3 0

Answer:

The minimum number of customers that result in accepting the project is 17,449

Explanation:

From the attached spreadsheet, we found the below :

(((13X -100000)*10.67478)+146017.9) =1500000

(13X-100000)*10.67478=-146017.9+1500000

(13X-100000)* 10.67478=1353982.1

13X-100000=1353982.1 /10.67478

13X=126839.3447 +100000

13X=226839.3447

X=226839.3447/13

X=17449.18

Download xlsx
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Answer:

Apportioned joint cost to A=$92,800

Explanation:

<em>Joint costs are the costs incurred up until the split-off where two or more products result from the same production process. These  common costs need to be apportioned among the joint products using any of the following basis:</em>

  1. physical units
  2. Relative sales value basis.

The relative value basis apportions joint costs using the proportion of product individual sales value to the the total sales value.

Total sales value = (280×4,000) + (100×2,800) =1400000

Apportioned joint cost to A =(1,120,000/1,400,000)× 116,000=92800

Apportioned joint cost to A=$92,800

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3 years ago
Which of the following is an argument for free trade?
ipn [44]

i think it's" B" , from the explanation!

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Free trade increases the size of the economy as a whole. It allows goods and services to be produced more efficiently. ... Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. Greater competition is also likely to improve quality and choice.

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3 years ago
What market structure would the manufacturers of the cellular phones be categorize as?
deff fn [24]
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3 years ago
Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on he
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Answer: Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,700.

Explanation:

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A = 2000(1+(0.085*10))

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