1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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
You might be interested in
A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $4.00 pe
Montano1993 [528]

Answer:

   profit for the day           $ 2,001.64

Explanation:

We should subtract from the revenue of the 200 sandwhich prepared and sold the variable cost to made the sandwhihc the loss for the lost sales and the proportional fixed cost considered are allocated among the 25 days which the restaurant is open.

200 x $15 dollars =             $ 3,000

28 x $5 loss sales:              $   (140)

variable cost: 200 x $4       $  (800)

proportional fixed cost:

(1,234 + 225) / 25 =          <u>   $ (58.36)     </u>

     profit for the day           $ 2,001.64

4 0
3 years ago
when setting up a product/service item in quick books which box do I check to assign a preferred vendor
sasho [114]
To create service items in QuickBooks Desktop, click the “Item” button in the lower-left corner of the list window. Then select the “New” command from the pop-up menu. In the “New Item” window, select “Service” from the “Type” drop-down. Enter a name for the service into the “Item Name/Number” box.
6 0
3 years ago
Relationship between risk and return
Svetlanka [38]

Answer:

Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns.

7 0
3 years ago
Suppose that an economy consists of only two individuals. Leland has $1950 available to spend on goods. He decides to purchase $
Illusion [34]

Answer:

$370

Explanation:

The computation of the economy income as follows:

Since Leland decided to buy the worth of produce in the present month for $370

So for the present month or the current month, the economy income is $370

Therefore the same would be considered also the single transaction is taken place in the current month

6 0
2 years ago
Kết cấu TK 131 “Phải thu của khách hàng” có số dư?<br> Kết cấu TK 331 “Phải trả người bán” có số dư?
Georgia [21]

Answer:

sjhshs sjjsbs ishsbs ishvsd

8 0
3 years ago
Other questions:
  • A company makes necklaces with attached letters. Department A manufactures the necklace chains and letters ahead of demand. Depa
    11·1 answer
  • The subject has $8,000 pool and a $2,000 chimney but no porch. a comparable that sold for $199,000 has a $3,000 porch but no poo
    12·1 answer
  • "In the corn market, demand often exceeds supply and supply sometimes exceeds demand." "The price of corn rises and falls in res
    10·1 answer
  • When might be the best time to start saving for retirement?
    5·2 answers
  • Suppose a merchant in a moneyless economy trade has goods for large amount of purple fabric. He intended to use the fabric to tr
    5·2 answers
  • Jackson is a 30 percent partner in the JJM Partnership when he sells his entire interest to Rhonda for $112,000 cash. At the tim
    15·1 answer
  • In fiscal 2016, Snap-On Inc. reported a statutory tax rate of 35%, an effective tax rate of 30.5%. Income before income tax for
    13·1 answer
  • Choose all that apply. Select each of the tools and services available with a savings account. i'm thinking 1,2,3,4,5
    12·1 answer
  • Vista Company is consideringt two new projects, each requiring an equipment investment of $97,000. Each project will last for th
    12·1 answer
  • Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!