Whispering Winds Corporation, which operates an amusement park, is considering a capital investment in a...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Whispering Winds Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $143,000 and have an estimated useful tife of 5 years. The park will sell it for $67,600 at that time. (Amusement parks need to rotate rides to keep people interested.) The ride will be expected to increase net annual cash flows by $26,500. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company. (If the net present value is negative, use either a negative sign preceding the number eg -45 or porentheses eg. (45). For calculation purposes, use 5 decimal places as displayed in the foctor table provided, eg. 1.25124. Round present value answer to 0 decimal places, eg. 125.)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.