foralways3348
07.12.2020 •
Business
Samantha works at an arcade parlor. She has noticed that, although the arcade is full during peak hours, half the game machines are unoccupied during non-peak hours. This leads to losses because the arcade has to sustain the cost of running the utilities. What should Samantha’s arcade parlor do in order to increase demand during non-peak hours?
A. ask customers to visit the arcade during non-peak hours
B. sell game tickets (coins) at a lower price during non-peak hours
C. decrease the number of active game machines during non-peak hours
D. increase the number of games per ticket in the arcade
Solved
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Ответ:
c
Explanation:
Ответ:
Maximum amount will be present value of future cash flow is $684,772.10
Explanation:
Present Value of annual cash flow = Annual Cash flows * Present value of annuity of 1
Present Value of annual cash flow = $103,900 * 6.590684
Present Value of annual cash flow = $684,772.0676
Present Value of annual cash flow = $684,772.10
Workings
Present value of annuity of 1 = (1-(1+i)^-n)/i
i = 8.40%, n = 10 years
Present value of annuity of 1 = (1-(1+0.084)^-10)/0.084
Present value of annuity of 1 = 6.590684306