Question
Two options are under consideration for a new ride at an amusement park. The two candidates differ in their complexity, cost, and anticipated revenue. The
Two options are under consideration for a new ride at an amusement park. The two candidates differ in their complexity, cost, and anticipated revenue. The parameters for both options appear on the sheet below. Note that the status quo is a viable option. Choose the best option if they are mutually exclusive:
Using the total investment approach. Do your calculations by hand in your working document and also in Excel on sheet below using as far as they exist, the Excel financial functions to perform your options assessment. (For example, use the VAN function to calculate the present value of a series
MARR = 10% Diffrentiel Option A Option B Investment in $ After-tax revenue in $ Salvage value in $) Economic life 450 000 80 000 300 000 55 000 0 0 10 ans 10 ans VAN = MARR = 10% Diffrentiel Option A Option B Investment in $ After-tax revenue in $ Salvage value in $) Economic life 450 000 80 000 300 000 55 000 0 0 10 ans 10 ans VAN =Step by Step Solution
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