What would be the total net present value of the rides

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Reference no: EM132703955

Question - MidWest Amusements is in the process of reviewing 10 proposals for new rides at its theme parks in cities scattered throughout the American heartland. The company's only experienced safety engineer must carefully review plans and monitor the construction of all new rides. However, she is only available to work on new rides for 1,699 hours during the year. The net present values and the amount of safety engineer time required for the proposed rides are listed below:

Proposed Ride

Net Present Value

Safety Engineer Time Required (hours)

Ride 1

$1,278,225

345

Ride 2

$1,152,000

360

Ride 3

$561,600

270

Ride 4

$598,500

175

Ride 5

$546,250

250

Ride 6

$338,850

135

Ride 7

$219,300

129

Ride 8

$259,760

136

Ride 9

$575,640

164

Ride 10

$412,360

244

Total

$5,942,485

2208

Required -

1. Which of the proposed rides should the company build this year?

2. What would be the total net present value of the rides built under your plan?

Reference no: EM132703955

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