Sensitive to the projected range of revenue

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Reference no: EM131977972

The Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of $500,000, to the new arena in downtown Milwaukee. They will only make the investment if it will result in a rate of return of 1 5% per year or higher. If the revenue is expected to be between S1 38,000 and $165,000 per year for 5 years, use a present worth analysis to determine if the decision to invest is sensitive to the projected range of revenue.

Reference no: EM131977972

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