How do you find variable cost?

6. The Ocean City water park is considering the purchase of a new log flume ride. The cost to purchase the equipment is $5,000,000, and it will cost an additional $380,000 to have it installed The equipment has an expected life of six years, and it will be depreciated to zero using straight line depreciation. Management expects to run about 150 rides per day, with each ride averaging 25 riders. The season will last for 120 days per year. In the first year, the ticket price per rider is expected to be $5.25, and it will be increased by 4% per year The variable cost per rider will be $1.40, and total fixed costs will be $425,000 per year. After six years, the ride will be dismantled at a cost of $215,000 and the parts will be sold for $450,000. The cost of capital is 8.5%, and its marginal tax rate is 35% Calculate the following for items A through F: A. Ticket prices for years 1 through 6 B. Initial outlay C. Terminal cash flow D. Annual after-tax cash flow for each vear E. NPV F. IRR and MIRR G. Is the project acceptable? H. Perform a scenario analysis that computes NPV,IRR, and MIRR assuming annual ticket-price increases of 3%, 4%, 5%, 6%, and 7%