The Heritage Amusement Park would like to construct a new ride called the Sonic Boom, which the park management feels would be very popular. The ride would cost $450,000 to construct, and it would have a 10% salvage value at the end of its 15-year useful life. The company estimates that the following annual costs and revenues would be associated with the ride: (Ignore income taxes):

Ticket revenues Less operating expenses: Maint enance Salaries Depreciation nsul Ce Total operating expenses Net operating income $250,000 $40,000 90,000 27,000 30,000 187,000 63,000