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The management of an amusement park is considering purchasing a new ride for $98,000 that would have a useful life of 10 years and a

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The management of an amusement park is considering purchasing a new ride for $98,000 that would have a useful life of 10 years and a salvage value of $11,800. The ride would require annual operating costs of $41,000 throughout its useful life. The company's discount rate is 9%. Management is unsure about how much additional ticket revenue the new ride would generate particularly since customers pay a flat fee when they enter the park that entities them to unlimited rides. Hopefully. the presence of the ride would attract new customers. (Ignore income taxes.) Click here to view Exhibit 12B-1 and Exhibit 12B-2 to determine the appropriate discount factor(s) using the tables provided. Required: How much additional revenue would the ride have to generate per year to make it an attractive investment? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Additional revenue EXHIBIT 128-1 Present Value of $t: Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 3% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0962 0.952 0943 0935 0.926 0.917 0909 0901 0893 0.885 087 08700862 0855 0.847 0840 08330826 0.820 0.813 0.806 0.800 2 0.925 0907 0890 0.873 0.857 0.842 0.826 0812 0797 0.783 0769 0756 0743 0731 0718 0706 0.694 0.683 0.672 0661 0.650 0640 3 0.889 0864 0.840 0816 0.794 07172 0.751 0731 072 0693 06750658 0641 0624 060905930579 05640551 0537 0.524 0.512 4 0855 0823 0.792 0.763 0735 0708 0683 0659 0636 0613 0592 0.5720552 0534 0.516 0.499 0.482 0.467 0.451 0.437 0423 0410 5 0822 0784 0747 073 0.581 0650 0621 0593 0567 0543 0519 0.497 0476 0456 0437 0.419 0402 0.386 0.370 0355 0.341 0328 0790 0746 0705 0666 0.630 0596 0564 0535 0507 0.480 0456 0.432 04100390 0370 0352 0335 0.3190303 0289 0275 0262 7 0760 071 0665 0623 0583 0547 0513 0482 0452 0425 0.400 0.375 0354 0333 0340296 0279 0263 0249 0235 0222 0210 8 0731 067 0627 0.582 0540 0502 0.467 06034 0404 0376 0351 0327 0305 0285 0 266 0249 0233 0278 0204 0191 01790168 9 0703 0645 0592 0544 0.500 0.460 0424 0.391 0361 0333 0308 0284 0263 0243 0225 0209 01940180 0157 0155 014 0134 10 0676 064 0.558 0508 0463 0422 0386 0352 0322 0295 0270 0247 0227 0208 0191 0176 0162 019 0137 0126 0116 0107 11 0650 0585 0527 0475 0429 038 03500317 0287 0261 0237 021501950178 0162 0148 0135 0123 012 0103 0094 0086 12 0625 0557 0.497 0.444 0.397 0.356 0319 0286 0257 0231 0208 0.187 0168 0152 01370124 01120102 0.092 0083 0.076 0.069 130601 0530 0.469 0415 0.368 0.326 0 290 0258 0229 0 204 0182 0.163 015 013001160104 0.093 0.084 0.075 0068 0061 0055 14 0577 0505 0.442 0388 0340 0299 0 263 0232 0 205 0181 0160 0541 0125 0111 0099 0088 0.078 0.069 0.062 0055 0049 0.044 15 05550481 0417 0362 0315 0275 0239 0209 0183 01600200123 0108 0095 0084 0074 0065 0057 0.051 0045 0040 0.035 16 0534 0458 0.394 0.339 0292 0252 02180188 0163 0141 0123 0907 0093 0081 007 0062 0054 0047 0.042 0036 002 0028 1 0513 0436 037 03170270 0231 0198 01700146 01250108 0093 0080 0069 0060 0052 0045 0039 0034 0030 0026 0023 18 049404160350 0.296 0.250 0212 0180 0153 01300111 0.095 0.081 0.069 0059 0051 0044 0.038 0032 0.028 0024 0021 0018 19 0475 0.396 0.331 0277 0232 0194 0154 0038 0116 0.098 0.083 0070 0.060 0051 0013 0037 0031 0027 0023 0020 00 00 200456 037 0.312 0258 02150178 019 0124 0904 0.087 0073 0061 0051 004 0037 0031 0026 0022 0.019 004 00 00 21 0419 01 0794 0242 0199 0164 015 0120093 0077 0064 0.053 004 0037 001 0026 0022 003 00150010010009 2 0422 0342 0278 0226 0184 0150 0123 0301 00 0068 0056 0046 0038 0032 0026 0022 0018 001 000 000 00090007 2 0 1602021101700138 011200910074 0060 0009 0040 0033 002100220018 0015 0012 0000 000 0002 000 24 200 0 247 097 0158 0126 002 002 006 005 004 00350021 00230 019 0015 003 000 000 000 25 0375 0295 0233 014 0146 0116 0092 004 005 004 00 0.030 0024 0020 0016 0013 0010 0009 0007 0006 0005 0004 26 0 261 0220 0172 013501050084 0006 0053 0042 0033 0026 0021 0011 0010011 0009 0007 0006 000 0004 0.007 27 026 0207 0161 0125 0058 00760000 0047 001 002 0023 00180014 0011 0009 0007 00060005000400020002 28 0333 0255 0196 0150 0116 0090 0059 0054 0042 00 0026 0020 0016 0012 001 0.008 0006 0005 0004 0000 0002 0002 20022102410185 011 0107 OOR2 0063 0048 0031 0029 0022 000 0014 0011 000 0006 0005 00040001 0002 0000 000 2 0304 0231 01140131 00990075 0057 004 003 0026 0020 0015 0012 0009 000 0005 0004 0003 0003 0002 0002 0001 0 0204 0220097 0067 0046 0032 0022 0015 001 0008 0.005 0.004 0000 0002 00010001 0001 0000 0000 0000 0000 0000 EXHIBIT 1202 Present Value of an Annuity of $1 in Arreurs 41 - Periods is pla lestart 6624 10% 17% 1 5 16% 17% 18% 19% 20% 21% 22% 23% 245 255 0.962 0952093 09350926 0917 090909010293 085 077 070 0852 0855 0847 0840083 0826 0820 081 0806 0800 1833 1808 18 1759 1735 170 1690 1668 1647 1626 1605 15851566 1547 1528 1509 1492 1474 1457 1440 2673 2624 257 2571 2487 2444 2.402 >361 2322 2283 2246 2210 2114 210 2106 2074 2042 2011 1981 1952 35463865 337 3 32003170312 300229742914 2855 278 273 2690 2639 2589 2540 2494 2448 2.404 2362 4329 42124100 39 380 3791 366 305 3517 3433 3352 3274 3199 3127 3058 2991 2926 2864 2803 2745 2689 5076 4917 4767 4623 46 4355 42 41 398 3889 3784 365 35 3498 3410 3326 3245 31673092 3020 2951 5786 5582 53895206 5033 486 4712 456 4423 4288 4160 4039 3922 3812 370636053508 3.416 3327 32423.161 6.463 6210 5971 51475535 5335 516 4399 4639 4487 43444207 4078 3954 3837 3726 3619 3518 3421 3329 20 202 65156247 995 5759 5537 5328 532 4946 4772 4602 4 451 4303 4163 4031 3905 3.786 36733566 3.463 811 7722 7350 7024 670 6418 615 589 4830 4659 4494 43394192 4054 3.923 3.799 3682 3571 8.750 83067887 7499 709 6805 6495 5207 508 SET 5453 524 5029 4836 4656 4 486 4327 417 4035 3902 37763656 9385 8863 7903 2161 6814 6492 674 596 5656 5137 498 4793 4611 4439 4278 4127 39853851 3725 13 9986 9.394 8853 83587904 47 7103 5342 518 4910 475 4533 4362 4203 4053 3912 3780 14 10 563 9899 9.2958745 244 52 5229 5008 4802 4611 4432 4.265 4108 3962 3824 151118 803809712 9108 8559 52 55.5 54 5092 4876 4675 4489 43154153 4001 3859 16 11652 1083810106 3137824 594 568 5.405 53624938 4730 4536 4357 41894030 3887 17 2166 112140477 9763 9122 544 022 360475 545 522 4990 4775 456 4391 4219 4059 3910 18 2659 11690 10828 500599372 8756 8201 7702 7250 57 6128 5 554 5213 5033 48124608 419 420 40803928 1931405 11158 03359604 6550619 577 554 536 5070 480 4635 4442 4253 4097 3942 20 462 1167005949 909 554 73 905 66 985763 709 7025 6623 629 529 5628 5353 51014870 4657 44604279 403954 21 029 12 21 11764 10836 0017 9282 8649 OS X 702 661 6312 5665 5384 517 4891 4675 4476 42924213963 22451 01312042 1106110201 9812 8172 176 7645 71706) on 5696 5410 549 4909 46904488 4302 403970 23 857 13 489 12 303 11272 10.371 2218 22:06 2 900 5723 5432 5 157 4925 4703 4499 431 40 3976 24 15 247 13 199 12550 11.4690529 7784 2283 63 64 607 546 5451 512 4937 473 4507 418 4 301 25 5622 M09 12783 1654 1675 67 56 5667 51954948 4721 451 4323 473985 26 593 35 1003 1126 29 6 50 5.60 5 206 4956 428 4520 43284158 27 330 M6) 3211 115 935 027 SH S 542 525 45644734 4524 432 41543990 28 5663 138 13406 2007 2051 116 5342 505 502 5 223 4970 479 4528 4335 41573992 29 16984541 3591 12278 11158101893708 66 520 5510 5229 4975 44 4531 433741593994 30172925372 3765 2409 112580274 9028 61529 551 523549794746 4534 439 43603995 40 979317159 15046 1332 115051075 5779 625 5518 5 25 492 404544 437 4166199 5 . *** 14

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