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Bramble Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $ 1 3 4 ,
Bramble Corporation, which operates an amusement park, is considering a capital investment in a
new ride. The ride would cost $ and have an estimated useful life of years. The park will
sell it for $ at that time. Amusement parks need to rotate rides to keep people interested.
The ride will be expected to increase net annual cash flows by $ The companys borrowing
rate is Its cost of capital is
Click here to view the factor table.
Calculate the net present value of this project to the company. If the net present value is negative,
use either a negative sign preceding the number eg or parentheses eg For calculation
purposes, use decimal places as displayed in the factor table provided, eg Round present
value answer to decimal places, eg
Net present value $
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