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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 1,737 hours during the year. The net present values and the amount of safety engineer time required for the proposed rides are listed below: Safety Engineer Time Required Proposed Ride Ride 1 Ride 2 Ride 3 Ride 4 Ride 5 Ride 6 Ride 7 Ride 8 Ride 9 Ride 10 Net Present Value $ 1,277,500 1,088,000 700,800 609,450 560,000 426,250 327,600 1,635,600 362,600 478,800 350 340 320 170 250 125 126 376 196 266 Total 7,466,600 2,519 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 2 Ride 2 ?Ride 3 2 Ride 4 ?Ride 5 Ride 6 ?Ride 8 Ride 10 2 Ride 7 Ride 9
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