What are the pretax combined cash flows

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Reference no: EM132802012

The Astro World amusement park has the opportunity to expand its size now? (the end of year? 0) by purchasing adjacent property for $275,000 and adding attractions at a cost of ?$575,000. This expansion is expected to increase attendance by 35 percent over projected attendance without expansion. The price of admission is ?$35?, with a? $5 increase planned for the beginning of year 3. Additional operating costs are expected to be? $100,000 per year. Estimated attendance for the next five? years, without expansion?, is as? follows:

Year & Attendance

Year 1 30,000
Year 2 34,000
Year 3 36,750
Year 4 38,500
Year 5 42,000

What are the pretax combined cash flows for years 0 through 5 that are attributable to the? park's expansion?

The cash flows attributable to the? park's expansion in year 0 are ?$-850,000

Please answer:

The cash flows attributable to the? park's expansion in year 1 - 5 are ?$

Reference no: EM132802012

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