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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 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 1,479 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 $ 930,000 250
Ride 2 1,152,000 360
Ride 3 615,000 300
Ride 4 593,250 175
Ride 5 542,500 250
Ride 6 506,250 150
Ride 7 448,000 112
Ride 8 687,800 362
Ride 9 637,000 182
Ride 10 418,320 252
Total $ 6,530,120 2,393

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 9
Ride 5
Ride 4
Ride 7
Ride 10
Ride 2
Ride 8

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

Total $0

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