The managers at Melody’s Movie theater are considering whether to upgrade their film projector. The upgraded projector costs $120,000 and will last for an estimated 6 years. It will be depreciated using the 3-year MACRS schedule. The upgraded projector will have an estimated $5,000 salvage value in year 7.

The upgraded projector will replace the theater’s existing projector. The existing projector was purchased 5 years ago, for $45,000. The old projector was also depreciated using the 3-year MACRS schedule. If the old projector is replaced, it will be sold immediately (in year 0) for $20,000. If the old projector is not replaced, it will last for 6 more years, and will be sold as scrap for $1,000 in year 7.

With the new projector, Melody’s Movie theater will be able to show enhanced 3D films, and they estimate that their annual sales will increase from $200,000 per year to $260,000 per year. Total operating costs associated with the business will not be affected by the new projector. Costs will be $110,000 per year regardless of projector.

Melody’s corporate tax rate is 30%.

a. Calculate the capital spending cash flows for the project.

b. Calculate the operating cash flows for years 1 to 6.

Hassle-Free Web is bidding to provide web hosting services for Hotel Lisbon. Hotel Lisbon pays its current provider $10,400 per year for hosting its web page, handling transactions, etc. Hassle-Free figures that it will need to purchase equipment worth $14,800 up front and then spend $1,800 per year on monitoring, updates, and bandwidth to provide the service for 33 years. If Hassle-Free's cost of capital is 9.7 %, can it bid less than $10,400 per year to provide the service and still increase its value by doing so?

Hassle-Free can bid as low as $?

Using the 2009 Budget (Money is given in Canadian dollars), prepare a break even analysis to find:

1. At what trip fee does JUDES break even on the trips?

2. At what participant level does JUDES break even on the trips?

Please show all formulas and calculations so I can follow along and learn how to apply the concepts for the future.

what are the interior and exterior facilities required to construct an amusement park

details of infrastructure of an amusement park

Hotel (hotelno(PK), hotelname, city)

•         Room (roomno (PK), hotelno (PK,FK), type, price) type can be single, double, family

•         Booking (hotelno(PK,FK), guestno(PK,FK), startdate(PK), enddate, roomno(PK,FK))

•         Guest (guestno(PK), guestname, guestaddress)

1-Display on the screen the hotel name and city of all room type family.

2-Display hotel name and city for the guests currently staying at the Holiday Inn Hotel.

1. Marketing Exam

Describe how live theater could deal with the Intangibility, Inconsistency, Inseparability and Inventory (perishability) of marketing services.

(20 points)

Taking the family to an amusement park has become increasingly costly according to the industry publication Amusement Business, which provides figures on the cost for a family of four to spend the day at one of America’s amusement parks. A random sample of 25 families of four that attended amusement parks yielded the following costs, rounded to the nearest dollar.

Given the cost is normally distributed.

a) Suppose the population standard deviation is $21. Determine a 95% confidence interval for the mean cost of a family of four to spend the day at an American amusement park.

c) What is the margin of error of the 95% confidence interval obtained ?

d) Suppose we want to find a 95% confidence interval with margin of error 0.5. How many samples shall we collect?   

The United States appears at times to have a totally schizophrenic attitude toward protectionism. The United States was the country that proposed the establishment of the World Trade Organization as early as the late 1940s, and was also the only industrialized country that refused to ratify this at that time. The United States has consistently argued on the side of multinational free trade in GATT Rounds, and yet maintains many protectionist laws such as those which reserve oil shipments from Alaska to U.S. flag carriers. How can you explain this apparent lack of national consistency on this issue?

Playland at Pacific National Exhibition is an amusement park offering 31 different rides (including 4 rollercoasters and 1 water ride). The guests who are 48” or taller can go on any ride they want and so they get more value from visiting the park; let us say their individual demand is given by P = 5 – 0.25qO, where P is the price per ride ($ per ride) and qO is the number of the rides (per day) (the subscript O stands for “One Day;” that’s how the park calls its passes for the guests who are 48” or taller). The guests who are under 48” are not allowed on certain rides so they get less value from visiting the park; let us say their individual demand is given by P = 4 – 0.25qJ, where P is the price per ride ($ per ride) and qJ is the number of the rides (per day) (the subscript J stands for “Jr. One Day;” that’s how the park calls its passes for the guests under 48”). Assume it costs the park flat ¢25 per guest to operate a single ride, and it costs the park flat ¢75 to issue a single ticket to a ride. Assume there are 500 guests 48” or taller and 500 guests under 48” on an average day. We can consider Playland a monopolist in Vancouver.

If Playland employed a second-degree price discrimination scheme (single ride tickets are issued, each rider receives a book of tickets [qO or qJ]),

10. what would be the size qO of a package for guests 48” or taller (number of rides with a One Day admission)?

11. what would be the price TO of a package for guests 48” or taller ($ for a One Day admission)?

12. what would be the size qJ of a package for guests under 48” (number of rides with a Jr. One Day admission)?

13. what would be the price TJ of a package for guests under 48” ($ for a Jr. One Day admission)? 14. what is Playland’s profit on an average day ($ per day)? Assume zero fixed cost.