Suppose that Disney will build a new ride for “Frozen” at the Epcot theme park. The ride will replace the Maelstrom ride at the Norway pavilion. The imagineers have priced out the ride and they think they can use some old ride vehicles and equipment from the retired Snow White ride. If the project is rejected, the equipment could be sold to another amusement park for $100,000.00. The equipment has been fully depreciated. If the tax rate for Disney is 35.00%, what is the opportunity cost of using the Snow White equipment? (express as positive number)
Opportunity cost of using the old equipment=After-tax salvage value=Sale value*(1-tax rate)=100000*(1-35%)=65000.00
Suppose that Disney will build a new ride for “Frozen” at the Epcot theme park. The...
2. Case Discussion for INTERNET MARKETING Digital Transformation at Disney World The Disney theme park experience – whether it is at the Magic Kingdom in Walt Disney World in Orlando, FL or the original Disneyland in Anaheim, CA or one of the newer parks, such as the Shanghai Disney Resort (opening in 2016) – is designed to be an immersive, exciting, and definitely magical experience for guests. Disney famously wants the reality created inside its theme parks to be better...
Until 1992, the Walt Disney Company had experienced nothing but success in the theme park business. Its first park, Disneyland, opened in Anaheim, California, in 1955. Its theme song, “It’s a Small World After All,” promoted “an idealized vision of America spiced with reassuring glimpses of exotic cultures all calculated to promote heartwarming feelings about living together as one happy family. There were dark tunnels and bumpy rides to scare the children a little but none of the terrors of...