Answer:
<u>Yes, the outdoor ice skating rink should be installed.</u>
Step-by-step explanation:
We can reach this conclusion after simulating the profit for each possible scenario made by The US weather service estimates:
<u>For 80-day suitable weather per year:</u>
- total invested capital =<u> </u>$950,000 + $200,000 (total operating and maintaining cost) = $1,150,000
- per day revenue= 500 x $20 = $10,000
- total revenue per season = $10,000 x 80 days = $800,000
- total operating and maintaining cost = $2,500 x 80 = $200,000
- total profit (returns) in a season = $800,000-$200,000<u> = $600,000</u>
- per year rate of return before taxes = 52% (total profit / total invested capital *100; $600,000/$1,1150,000 *100 = 52%
<u>For 100 days suitable weather per year:</u>
- total invested capital =<u> </u>$950,000 + $200,000 (total operating and maintaining cost) = $1,150,000
- per day revenue= 400 x $20 = $8,000
- total revenue per season = $8,000 x 100 days = $800,000
- total operating and maintaining cost = $2,500 x 100 = $250,000
- total profit (returns) in a season = $800,000-$250,000<u> = $550,000</u>
- per year rate of return before taxes = 52% (total profit / total invested capital *100; $550,000/$1,1150,000 *100 = 47%
<u>For 120 days suitable weather per year:</u>
- total invested capital =<u> </u>$950,000 + $200,000 (total operating and maintaining cost) = $1,150,000
- per day revenue= 300 x $20 = $6,000
- total revenue per season = $6,000 x 120 days = $720,000
- total operating and maintaining cost = $2,500 x 120 = $300,000
- total profit (returns) in a season = $800,000-$250,000<u> = $420,000</u>
- per year rate of return before taxes = 52% (total profit / total invested capital *100; $420,000/$1,1150,000 *100 = 58%
Threfore, we notice that the 22% per year rate of return before taxes criteria was met in each of the possible scenarios, making the endeavor worthwhile.
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The terms are -80, 4p, and -6z.
The coefficients are 4 and 6.
Terms are separated by the addition and subtraction sign.
Coefficients are the numbers that go in front of the variable.
Answer:
$225.00
Step-by-step explanation
First, take the percentage and switch it to a decimal. 10%= 0.10
Next, take $250.00 and multiply that by 0.10. 250x0.10=25
Lastly, subtract 25 from 250. 250-25= 225.
So you’re final answer is $225.00 Hope this helped!
