please solve this as soon as possible its due in one hour
Sharkey's Fun Centre contains a number of electronic games, as well as a miniature golf course and various rides located outside the building. Paul Sharkey, the owner, would like to construct a water slide on one portion of his property. Sharkey has gathered the following information about the slide 145 a Waterslide equipment could be purchased and installed at a cost of $420,000. According to the manufacturer, the slide would be usable for 12 years, after which it would have no salvage value Sharkey would use straight line depreciation on the slide equipment To make room for the water slide several rides would be dismantled and sold. These rides are fully depreciated, but they could be sold for $70,000 to an amusement park in a nearby city, d. Sharkey has concluded that about 40,000 more people would use the water slide each year than have been using the rides. The admission price would be $480 per person (the same price that the Fun Centre has been charging for the rides) e On the basis of experience at other water slides, Sharkey estimates that incremental operating expenses each year for the slide would be as follows salaries, 372,000, insurance $3.500 utilities, $11.000, maintenance, $8,375, Required: 1. Prepare an income statement showing the expected incremental net income each year from the water slide 5 192.000 SHARKEY'S FUN CENTRE Incremental Income Statement Ticket revenue Deduct Operating expenses Salarios 5 72.000 Insurance 3,500 Uti 11.000 Maintenance 8375 Depreciation 35000 Total operating expenses Net Income 129 875 129.875 $ 2-0. Compute the SRR expected from the water slide Simple rate of relum 2-b. On the basis of this computation would the water slide be constructed if Sharkey requires an SRR of at least 14% on all investments? O Yes ONO 3.6. Compute the payback period for the water slide (Round your answer to 2 decimal place) Payback period years 3.b. If Sharkey requires a payback period of five years or less, should the water slide be constructed? Yes NO