The ocean city Water park is considering the purchase of a new log flume ride. The Cost to purchase the equipment is $3,500,000, and it will cost an additional $250,000 to have it installed. The equipment has an expected life of 6 years , and it will be depreciated using MARCS 7-years class life. Management expects to run about 150 rides per day , wih each ride averaging 25 riders. The season will last for 120 days per year. In the first year tickets per rider is expected to be $4 and it will be increased by 4% per year. The variable cost per rider will be $1.40 and total fixed cost will be $115,000 and the parts will be sold for $450,000. the cost of capital is 12% and its marginal tax rate is 35%.

Can you please show all of the formulas used in excel to solve this problems, thank you.

A) Calculate the initial outlay, annual tax cash flow for each year and the terminal cash flow.

B)Calculate the NPV, IRR, and MIRR of the new equipment. IS the project Acceptable?

C) Create a data table that shows the NPV, IRR, and MIRR for MRCS classes of 3,5,7,10,15 and 20 years. What do you conclude about the speed fo depreciation and the profitability of an investment?

D) Using the goal seek tool, calculate the minimum ticket price in order to make the project acceptable.