Answer:
It will take 1 year and 307 days to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $6,900
Cash flows:
Cf1= $4,200
Cf2= $5,100
Cf3= $6,300
Cf4= $5,500
Discount rate= 15%
<u>The payback period is the time required to cover the initial investment. We need to discount each cash flow.</u>
<u></u>
Year 1= 4,200/1.15 - 6,900= -3,247.83
Year 2= 5,100/1.15^2 - 3,247.83= 608.50
<u>To be more accurate:</u>
(3,247.83 / 3,856.33)*365= 307 days
It will take 1 year and 307 days to cover the initial investment.
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Answer:
C. ticket sales for the new coaster.
Explanation:
In the case when the sales is reduced for the boat rise so the new rise would decrease the sales of the boat ride.
in the case when the food cost would be increase so if the sales of the food rises so automatically the food cost would rise
In the case when there is an extra sales for existing coaster, the same is mentioned in the given case
Therefore the option c is correct
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