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IV. Calculation and Analysis.(30 points) The directors of Sunshine Theme Parks Limited are c park in the holiday resort license to operate the theme park for five years considering opening a new theme s, and have been granted a . T ey have lease land for five year Ad ditional information orecasts show that the initial cost of the investment will be $6 e The e investment of $6 000 000 includes 6 rides, costing $150 000 each he rides at a are to be depreciated over 5 years using the straight-line depreciation me rate of 20% per year thod for the first three years are ses, including depreciation, are forecast to rise by $200 000. In year five, running expenses are unning expenses, including depreciation for the rides, orecast to be $1 000 000 per year. In year four, running expen orecast to stay at the same level as in year four 第8页共10页

浙江科技学院考试试卷 For the first three years it is forecast that the theme park will operate for 210 days per yoar, with an average of 500 visitors per day, each paying a $25 entrance fee. In ycar four, it is forecast that the theme park will operate for 210 days, with an average of 600 visitors a day, each paying a S30 entrance fee. These figures are expected to stay the same for year five. It is company policy to have a payback period of five years on investment And the opportunity cost ofcapital is 16%. neapireec (1) Calculate the payback period of this project. (2) Calculate the net present value of this project. (3) Evaluate the project on behalf of Sunshine Theme Parks Limited. (4) Which factors should you consider, when making the investment decisions?

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