How many screens should be built

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The builder of a new cinema complex is trying to decide how many screens she wants. The table below shows her estimates of the number of patrons the complex will attract each year, depending on the number of screens available.

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After paying the film distributor and meeting all other non-interest expenses, the owner expects to net $2.00 per ticket sold. Construction costs are $1 000 000 per screen. How many screens should be built if the real interest rate is 7%?
also provides workings.

Reference no: EM131137989

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