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MidWest Amusements is in the process of reviewing 10 proposals for new rides at its theme parks in cities scattered throughout the American heartland. The

MidWest Amusements is in the process of reviewing 10 proposals for new rides at its theme parks in cities scattered throughout the American heartland. The company's only experienced safety engineer must carefully review plans and monitor the construction of all new rides. However, she is only available to work on new rides for 1,699 hours during the year. The net present values and the amount of safety engineer time required for the proposed rides are listed below:

Proposed Ride Net Present Value Safety Engineer Time Required (hours)

Ride 1 $1,278,225 345

Ride 2 $1,152,000 360

Ride 3 $561,600 270

Ride 4 $598,500 175

Ride 5 $546,250 250

Ride 6 $338,850 135

Ride 7 $219,300 129

Ride 8 $259,760 136

Ride 9 $575,640 164

Ride 10 $412,360 244

Total $5,942,485 2208

Required:

1. Which of the proposed rides should the company build this year? (Note: The incremental profit of a long-term project such as constructing a new ride is its net present value.)(You may select more than one answer.)

2. What would be the total net present value of the rides built under your plan?

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