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I was thinking about the topic B. What would be the answer :  b. Ignoring​ tax, depreciation, and the time value of​ money, determine how long it will take to recover​ (pay back) the investment.   It will takeenter your response hereyears.​(Enter your response rounded to two decimal places.​)

I was thinking about the topic B. What would be the answer :  b. Ignoring​ tax, depreciation, and the time value of​ money, determine how long it will take to recover​ (pay back) the investment.   It will takeenter your response hereyears.​(Enter your response rounded to two decimal places.​)

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 22P: The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500,...
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I was thinking about the topic B. What would be the answer : 

b. Ignoring​ tax, depreciation, and the time value of​ money, determine how long it will take to recover​ (pay back) the investment.
 
It will takeenter your response hereyears.​(Enter your response rounded to two decimal
places.​)
The Astro World amusement park has the opportunity to expand its size now (the end of year 0) by purchasing adjacent property for $225,000 and adding attractions at a cost of $550,000. This expansion is expected to increase attendance by 30 percent over projected attendance without expansion. The price of admission is $35, with a $5 increase planned for the beginning of year 3. Additional operating costs are expected to be $100,000 per year. Estimated attendance for the next five years, without expansion, is as follows: Year 1 2 4 Attendance 30,000 35,000 37,500 39,000 40,000 a. What are the pretax combined cash flows for years 0 through 5 that are attributable to the park's expansion? The cash flows attributable to the park's expansion in year 0 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 1 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 2 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 3 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 4 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 5 are $ . (Enter your response as an integer.) b. Ignoring tax, depreciation, and the time value of money, determine how long it will take to recover (pay back) the investment. It will take years. (Enter your response rounded to two decimal places.)
Transcribed Image Text:The Astro World amusement park has the opportunity to expand its size now (the end of year 0) by purchasing adjacent property for $225,000 and adding attractions at a cost of $550,000. This expansion is expected to increase attendance by 30 percent over projected attendance without expansion. The price of admission is $35, with a $5 increase planned for the beginning of year 3. Additional operating costs are expected to be $100,000 per year. Estimated attendance for the next five years, without expansion, is as follows: Year 1 2 4 Attendance 30,000 35,000 37,500 39,000 40,000 a. What are the pretax combined cash flows for years 0 through 5 that are attributable to the park's expansion? The cash flows attributable to the park's expansion in year 0 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 1 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 2 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 3 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 4 are $ (Enter your response as an integer.) The cash flows attributable to the park's expansion in year 5 are $ . (Enter your response as an integer.) b. Ignoring tax, depreciation, and the time value of money, determine how long it will take to recover (pay back) the investment. It will take years. (Enter your response rounded to two decimal places.)
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