Managerial Accounting

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a ski company plan to add five new chai500 a day for the lift. the lifts cost 2 million and to install the lift cost another 1.3 mil.The lift will allow 300 additional skiers on the slopes but only 40 days a year will be needed. The company will sell 300 lift tickets on those 40 days. Running the new lift will cost $500 a day for entire days. assume lift cost 55.00 a day. The new lift lift has an economic life of 20 years.

  • Managerial Accounting -

    Please proofread your post:

    "five new chai500 a day???

    And just what is your question?

  • Managerial Accounting -

    yes,oops add 5 new chair lifts

  • Managerial Accounting -

    I am sorry,for not being clear. I need to find out how to figure out NPV

  • Managerial Accounting -

    http://www.investopedia.com/terms/n/npv.asp

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