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Recently, Walt Disney World launched a new system for guest management. The FASTPASS+ system lets guests reserve rides before they get to Disney World. The
Recently, Walt Disney World launched a new system for guest management. The FASTPASS+ system lets guests reserve rides before they get to Disney World. The cost of developing this system was $5.00 million. Lets simplify the problem and assume that the project will increase cash flows to Disney World by $1.00 million per year for the next 10 years ($1 million for year 1, $1 million for year 2, etc). What is the IRR of this project for Disney?
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