Question
Create a data table that shows the NPV, IRR, and MIRR for MACRS classes of 3, 5, 7, 10, 15, and 20 years. What do
Create a data table that shows the NPV, IRR, and MIRR for MACRS classes of 3, 5, 7, 10, 15, and 20 years. What do you conclude about the speed of depreciation and the profitability of an investment?
Ocean City Water Park New Log Flume Ride Info Cost of Equipment $3,500,000 Installation $250,000 Life (Years) 6 MACRS Class 7 Riders per ride 25 Rides per Day 150 Days per season 120 Year 1 ticket price $4.00 Ticket price increase 4% Variable cost per rider $1.40 Annual fixed costs $320,000 Salvage value $450,000 Removal cost $115,000 WACC 12% Tax Rate 35%
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