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round answer to 2 decimal places Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost
round answer to 2 decimal places
Over the past six months, Six Flags conducted a marketing study on improving their park experience. The study cost $3.00 million and the results suggested that Six Flags add a kid's only roller coaster. Suppose that Six Flags decides to build a new roller coaster for the upcoming operating season. The depreciable equipment for the roller coaster will cost $50.00 million and an additional $5.00 million to install. The equipment will be depreciated straight-line over 20 years The marketing team at Six Flags expects the coaster to increase attendance at the park by 59 This trans es o 0790 more s tors at an average et OT Expenses for these visitors are about 13.00% of sales. There is no impact on working capital. The average visitor spends $25.00 on park merchandise and concessions. The after-tax operating margin on these side effects is 21.00%. The tax rate facing the firm is 35.00%, while the cost of capital is 6.00% What is the NPV of this coaster project if Six Flags will evaluate it over a 20-year period? Six Flags expects the first year project cash flow to grow at 5% per year going forward) Express answer in millions)Step by Step Solution
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