$0.25 What is the annual net cash inflow and how did you come up with answer???
What is the annual net cash inflow and how did you come up with answer???
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 $450,000 to construct, and it would have a 10% salvage value at the end of its 15-year useful life. The company estimates that the following annual costs and revenues would be associated with the ride: (Ignore income taxes):
|Less operating expenses:|
|Total operating expenses||187,000|
|Net operating income||$||