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 companys 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 1,343 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

$

654,300

180

Ride 2

1,088,000

340

Ride 3

710,400

320

Ride 4

617,100

170

Ride 5

563,750

250

Ride 6

279,950

110

Ride 7

343,200

143

Ride 8

654,000

150

Ride 9

331,080

178

Ride 10

472,140

258

Total

$

5,713,920

2,099

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. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.)

	Ride 1
	Ride 6
	Ride 3
	Ride 4
	Ride 5
	Ride 2
	Ride 8
	Ride 10
	Ride 7
	Ride 9

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

Total	$0