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VLD [36.1K]
2 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:
amm18122 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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Select the answer that best describes why the return on investment (ROI) for higher education is high even thought the cost of c
LekaFEV [45]
The correct answer for this question is this one: "B. You have the potential to earn less money in the future when you continue your education past college."

The return on investment (ROI) for higher education is high even thought the cost of college is increasing. So, <em>you have the potential to earn less money in the future when you continue your education past college.</em>
Hope this helps answer your question and have a nice day ahead.
5 0
3 years ago
All professional athletes earn a lot of money. wes plays professional football so he makes a lot of money. what type of reasonin
Andru [333]

I believe the answer is: inductive reasoning

In inductive reasoning, the  premises would be viewed as some sort of supply of evidence for the general conclusion. In the example above,

"all professional athletes earn a lot of money"  is the premise that is used as some sort of evidence for " wes makes a lot of money", which is the speaker's conclusion.


4 0
3 years ago
Read 2 more answers
Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two employees. Each employee only begins
Degger [83]

Answer:

12.55 days

Explanation:

<em><u>Provided information </u></em>

Number of employees 2

Average production time=1.8 days

Standard deviation=2.7 days

Inter-arrival time= 1 day

Coefficient of variation= 1 day

Standard deviation of inter-arrival time= 1 day

The coefficient of variations

<u>Inter-arrival coefficient of variation </u>

C_{vi}=\frac {\sigma}{T} where \sigma is standard deviation of inter-arrival time, T is inter-arrival time and C_v is coefficient of variation of inter-arrival time

C_{vi}=\frac {1 day}{1 day}=1

<u>Production time coefficient of variation </u>

C_{vp}=\frac {2.7}{1.8}=1.5

<u><em>Total utilization time </em></u>

U=\frac {T}{n*T_i} where T is the time of production, n is number of employees, U is utilization, T_i is inter-arrival time

U=\frac {1.8}{2*1}=0.9

Therefore, utilization time by 2 employees is 0.9

<u>Expected average waiting time </u>

T_e=(\frac {T}{n*T_i})*0.5(C_{vi}^{2}+C_{vp}^{2})*(\frac{U^{\sqrt{2(n+1)}-1}}{1-U})

Where T_e is expected average waiting time and the other symbols as already defined

Substituting 1.5 for C_{vp}, 1 for C_{vi}, 0.9 for U, 2 for n, 1 for T_iand 1.8 for T

T_e=(\frac {1.8}{2*1})*0.5(1^{2}+1.5^{2})*(\frac{0.9^{\sqrt{2(2+1)}-1}}{1-0.9})

T_e=0.9*1.625*8.583709=12.55367 days  and rounding off to 2 decimal places we obtain 12.55 days

Therefore, expected duration between order received and beginning of production is approximately 12.55 days

7 0
2 years ago
Barney, a manager, is very conventional, resistant to change, habitual, and does not accept new ideas very easily. This implies
xxMikexx [17]

Answer:

This implies or states to low openness to experience

Explanation:

Low openness to experience, it is related to people who are mostly dedicated to work they do and make sure that their tasks or work through to the end.

So, in this case, Barney, who is the manager is very resistant to adapt the change, very conventional and does not accept the new ideas so easily. This states that the manager, is very low for experiencing the openness or to the new ideas.

4 0
3 years ago
Value Electronics, Inc. started its operations on January 1, 2019.
elixir [45]

Answer:

The first step in operating cycle would be to purchase inventory from vendors.

The correct answer is D

Explanation:

The steps involved in operating cycle includes:

1. Purchase of inventory from vendors

2. Sale of goods to customers

3. Recording of sales in accounts                                                    

4. Collection of cash from customers                                

3 0
3 years ago
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